Business expansion advice: from funding to diversification of goods or services
When looking to take a business to the next level, you might want to consider business expansion advice. Getting an independent perspective from an expert who can offer a business appraisal, explore areas ripe for growth and help with information on funding and other growth aspects can often be the best option.
Here are some tips on how to approach business expansion.
Get the accounts in order – in many cases, business expansion will hold a funding requirement. If there isn’t the capital in the business to use for growth, it may be necessary to seek outside funding. Whether you’re looking to approach a bank or other funding source such as a private investor, having up-to-date accurate accounts, in order to present the necessary information about the company’s finances, will be key to success in borrowing requests.
Consider alternative lending sources – with the rise in alternative lending providers, the bank need not be the first port of call if your business expansion needs finance. With a variety of private investor options such as private equity firms and business angels – as well as crowdsourcing and peer-to-peer lending – there are plenty of options to consider. It’s usually a good idea to use the services of a business adviser, to help you find the funding options that are best suited to your needs and goals. In any event, they will help you get the right financial information ready and presented in the right way to aid a successful application.
Think outside of the box when it comes to expansion opportunities – many business owners are involved in a variety of aspects of running a company and this can sometimes prevent them from effectively identifying opportunities. Whilst expanding a product line, increasing volume sales or adding a new service might be the obvious ways of expanding a business, there can often be other ways a business can increase its revenue through expansion. For instance, diversifying into a new area by finding a new audience for your product or service, such as working as a manufacturer to wholesalers rather than a retailer to the end customer, could reap higher profit margins for the company. Think about ways to gear your product or offering towards the generation of repeat business. We helped one of our customers identify an opportunity to diversify their business and use capital from re-mortgaging their premises – which led to them dramatically increasing profits and securing blue-chip clients.
Consider acquisition – acquisition is a business expansion tactic in business expansion that historically was used in aggressive growth strategies by larger companies. However, it has become more commonplace for SME’s to go down the acquisition route, with great success. Combining expertise, knowledge and experience through acquisition can be a very fruitful venture.
Whilst the above advice can serve as a guide for expansion, when considering such activities, you should seek professional business expansion advice to ensure you’re making the right decisions for the business and goals, and have the best chance at making the expansion successful. Time and money invested at the outset in professional services will undoubtedly reap the rewards in the long term.
Need business expansion advice? Get in touch now on 01827 54944.