So, you’ve decided it’s time to take your business to the next level, and start multiplying your profits. But is your company in an optimal position for fast, efficient business growth?
Building a business is one thing. Growing it beyond the million-dollar mark is another. Read on to learn how you can start positioning your business to boost your annual sales past your $1 Million plateau, and start experiencing true business growth!
No two organizations are the same.
A tactic that works for one may not work for another, but there are a few strategies that are tried and true.
Growing your business may be an intimidating process due to the high level of uncertainty involved. The following are issues you may want to consider before expanding your business:
If you have the intention of incorporating your business as part of the growth plan or your company is already incorporated, you will have the option of using equity financing.
This is the process of generating capital through the sale of shares in a company to raise funds. Shares are commonly purchased by angel investors who can be wealthy individuals, friends or family.
Regardless of whether you decide upon debt or equity financing, you will need to update your business plan with clear descriptions that will reveal to lenders that the growth of your business will be profitable.
If you are unable to hire them or keep them on staff, you will repeatedly have to train new hires which takes a significant amount of time and money.
Part-time employees or contractors may fill in the gaps, but they probably won’t have the long-term best interests of the company in mind.
Assuming employees can be retained, acquiring or merging with an existing business may be the solution to any hiring woes.
If your organization was originally formed as a sole proprietorship, you may want to strongly consider changing the legal structure to a corporation if you need to hire additional payroll employees.
This is to reduce the level of liability you will face as the owner.
If you make the decision to grow your business by forming a partnership, it’s a great idea to keep in mind not everyone will have the continuous improvement of the organization in mind.
Almost 70% of business partnerships fail which is higher than the rate of divorce in the United States.
Eventually, almost all business owners who are considered successful must decide whether to expand their organization to address new opportunities for growth or to stay at their current level.
If a business leader concludes it’s best for the company to stay at its current level, it may be due to a lack of staff, time, money or other resources.
But if the conclusion is made in favor of growth, research and planning are needed.
There are two main reasons for growing your business. The first is increase not only revenue, but profits.
However, earnings may not be your primary reason for starting your own business which leads to the second reason for organizational growth.
You want your product or service to help more people. Or you may want your organization to be listed among America’s most generous companies.
Regardless of the motivation, there are definite advantages to growing your business which may include:
It’s vital that you compare the total amount of variable and fixed costs with the projected level of sales volume to determine if the expansion of your business will offer a return on your investment.
Need help getting started? Learn how we can help you grow your business by calling (877) 482-3008 today for a free consultation with an expert business advisor.
Or, fill out our simple 1-minute application online to get the funds you need in as little as 24 hours!
National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.
Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.
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Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.