Tips on how you can expand your business

For many businesses there comes a time when you are ready to expand, whether you are relatively new to business or a seasoned professional, this is still a big undertaking and one that needs careful planning before going ahead. One of the first things to do is to sit down and make a financial plan considering how you are going to manage your cash flow, apply for commercial finance and set out your strategy for growth.

Making a financial plan

Putting everything down on paper is very helpful because you can set out in black and white how you are going to achieve expansion, so a good plan will contain the following elements:

• Product plan

• Operational plan

• Separate marketing and sales plans dealing with competitors and customers

This will set out over the next 3-5 years your predicted profit and loss statements and what changes need to happen to ensure you meet your goal. It will drive your financial dealings including reviewing how to finance this expansion, whether commercial loans, private investors also known as “business angels”, franchising your operation and so on.

Consider buying the office

Up until now you may have had to work from home or rented office premises, so consider using commercial finance to buy a property. Not only will you have invested in a fixed asset that increases the value of your organisation but you will no longer be paying rent and getting no return for your money.

Diversify

Speak with your current clients and ensure you understand not just their current needs but their future requirements. Then offer additional products and services linked to your existing portfolio, which will address their needs and bring in new custom. This could be investing in new manufacturing equipment or additional staff but this is where the right commercial finance will help.

Target new markets

If your work is mainly with residential customers, explore the commercial field and target possible openings for your product or service. Use links with existing business networks along with social media for free advertising, to market your offer to a whole new set of clients. Review your advertising campaign to target industry publications, promote special introductory offers to entice new consumers and then showcase your high quality service and products.

Review the franchising option

This is not for everyone but it is one of the fastest ways to increase not just the market but your investment as others open companies or shops under your name but you are not responsible for the micromanagement of their operation. If this is part of your financial plan, then ensure you factor in the commercial finance costs of using a franchise solicitor, as this will be a necessity if you go down this route.

Form a partnership or alliance

If you have explored the opportunities open to you and you find that another company has the client base you want access to, then consider forming an alliance with that organisation. You will also have to bring something to the table they want, but if between you there is a one stop shop offer to clients, then this is worth considering. Use commercial loans to finance any marketing or rebranding of products and services, set out any legal agreements, expansion plans and so on.

These are some of the top tips to consider when reviewing expansion plans for your business, but remember the key is in planning and speaking to the experts in commercial finance, because they will have the experience to help you every step of the way. Finance 48 is best-placed to advice your business if you are looking to expand. Their commercial finance service ensures you receive unique personalised service that are tailored to your specific expansion needs. Click here for more information.