“If you build it, they will come,” is not a good plan for business expansion. A busy business with an owner who thinks that expansion definitely equals more business is a business that’s headed for disaster.
A full-fledged business expansion is a lot of work and a big commitment. If it fails, you might be able to shut it down with minimal losses applying for instant business loans, or it could end up bringing your core company down along with it. That’s why you need to be very careful when planning the expansion and deciding whether it’s viable. Below are three steps that many business owners overlook when they decide to respond to perceived market demand and expand.
Create a True Business Plan
Whether you need to secure financing for your expansion or not, you should have a completed business plan. Yes, having one looks good to lenders, but it also lets you really think about the plan you want to put in place and the obstacles you may be fighting. A marketing plan isn’t just about positive projections; it also forces you to consider your competition, think of ways to outshine them, and makes you think about a marketing and advertising plan so that your expansion isn’t met with complete silence.
Consider Whether the Expansion Could Stand on Its Own
If you have become busier and want to expand your business in order to alleviate some stress on your current employees, inventory, suppliers, and contractors, you still need to consider whether the expansion can stand on its own. This means finding out whether there actually is enough demand for your product and service to justify expansion. It also means considering whether the cyclical nature of retail could be problematic and should instead be met with a short-term solution. For some companies, it’s a much better choice to be slightly overworked and stressed than to expand the minute you see an increase in business.
Review Your Financial Needs
A business expansion can take many forms. It might mean opening a new location, moving your current location to a bigger space, handling your own manufacturing, outsourcing more work, hiring more employees, keeping more inventory in stock, or developing a whole new product or service. Either way, each of these forms of expansion requires money. Often, they don’t just require a short-term cash infusion, but enough new capital to sustain the expenses until the business ramps up enough to handle it on its own. The solution for many business owners is to secure a certified business loan. Certified business loans are an important option available to established business owners. They can fund short- or mid-term needs, with terms lasting as long as 18 months. Loan amounts range from $5,000 to $250,000 for business expansion projects, which means this is a cash flow solution that can give you a large enough cushion to plan substantial expansions that help you corner your market and master your industry.
Certified business loans also offer fast cash access, with many business owners receiving funding in just 5 business days.
Once you’ve worked through the process and decided that business expansion isn’t just a viable move for your business but a smart one, and you’ve determined how much money you need to fund the expansion, consider securing a certified business loan that gives you the power to build your business bigger.