In several of our last posts on growing your small business we’ve outlined strategies for growth that all had one thing in common, they cost money. For a time you may be able to fund things by using profits from your business, but at some point you will need more capital than you have on hand. What then?
Having a sound financial strategy in mind can prepare you to take that next step. You likely have a relationship with the bank that has your business account. Of course that would be a great place to start when you need a loan. What if they won’t lend you the funds you need? You’ll need a backup plan. Growing business through funding is possible through many different channels. Research a few options and have a list that you can refer to when the time is right.
Before you apply for that loan there are some things you need to do:
Make sure that your finances are in order. Lenders are much more likely to lend to those who pose a low default risk. A good credit history will put you in a good position to get the funds that you need.
Part of the application process will likely include questions regarding your business plan. Having a clear, concise description of how the money will be used can be very persuasive and will help in growing business via funding.
Consider hiring a professional accountant if you haven’t already done so. As more money starts flowing through your business it becomes harder to track on your own. Plus tax time can become extremely complicated. A professional accountant can handle those details for you and really reduce your stress level.
Remember, growing your business is supposed to be fun and exciting. Having a plan to manage growth can reduce the potential stressors and allow you to fully enjoy the growth cycle.