Have you got a business plan?
When any individual, partnership or team begins a business, there’s a costed plan to start and expand your business. That plan usually contains seven distinct elements:
- Executive summary.
- Company description.
- Market analysis.
- Organisational management.
- Sales strategies.
- Funding requirements.
- Financial projections.
You can read more about each step here but at PDQ Funding we will focus on the four steps in the title.
Arguably you clicked expecting advice on these and we won’t disappoint you.
Looking to Expand
You may decide that the time is right to expand your business for several reasons:
- Your customer base is loyal and growing
- You’re consistently making profits and these are increasing month on month
- You have developed a strong team and you know that expanding will mean they will rise to the challenges
- Your industry is growing
- You are turning away business because supply can’t cope with demand
- Room for business is tight
Expand your business with loyal customers
If you have a loyal band of followers, or brand advocates, well done. You know that word of mouth recommendations will generate more business. Close behind, digital testimonials will feed expansion. Positive Google reviews, retweets, Facebook recommendations can be used to multiply that tribe of customers.
To clarify, most businesses take time to become established. The first months and first year can be challenging. That is to say, start up costs of investing in furniture or equipment for a gin bar or cafe may eat up most of those funding figures in your business plan.
For example, after 6 months, it is unlikely that you will need a new Italian coffee maker but cashflow may be challenging if your business fluctuates seasonally or costs of supplies are outstripping income some weeks.
Teamwork makes the dream work
If you have a strong team in place, for instance, you may know that expanding is not only wise fiscally but also for workplace wellbeing. You may have great staff who could easily take on a new location or product line, for example.
New employees cost money but with the right training, you could find that investment in expansion pays off quickly.
Your industry is growing
There’s no doubt that some businesses are destined to die as technology changes. Would you invest in a DVD rental business or CD shop in 2019? Others come back in vogue: vinyl is one example.
It’s not just physical products however.
Consumers demand wider choices in quality food and drink and, in the same vein, your business could exploit this trend. You could expand your business, however, by spotting a trending opportunity.
Expand your business to stop turning away business
You may be unable to cope with demand from your vintage clothing, your range of artisan gins, your imported handmade shoes, resulting in cancelled orders as online buyers look elsewhere. You may need to invest to expand in a website with a CMS that does the invoicing and accounting for you, leaving you just to post items.
Customers from 50 miles away may comment that you need to open in their town.
Meanwhile, those people who travel every two months may visit every week if you expanded.
Can you afford to turn long distance visitors and spenders away?
Two’s company, three’s a crowd
Your premises that were perfectly adequate on launch became unsuitable six months after launch. You grew quickly, expanded product lines and footfall increased exponentially.
It could be the same with a barber shop, for example, that opened with two chairs and a steady customer base that grew and you notice customers don’t want long queues for a hair cut.
That is to say, you now need eight chairs, six new members of staff and premises twice as big?
A merchant cash advance would allow you to do that.
Refurbishment of fixtures and fittings in a business is often necessary and cost-effective. If you’re running a successful restaurant, with high footfall, consequently, furniture will see wear and tear quickly. Same with a business like a private nursery. Therefore, you will need baby and toddler friendly equipment replacing.
Trends and tastes change however and what may have seemed in vogue 5 years ago may now look dated.
Above all, we all know that one of the most cost-effective solutions when selling a home is to redecorate. To attract more customers and sell more, you may need to change wall decor.
Refurbishment can lead to better use of space, improved branding and, as a result, increase appeal to customers who will comment on cleanliness, furnishings and decor in their online reviews.
As a result, you may find that footfall increases in a prominent location following a major refurbishment.
Use a professional to expand your business
Firstly, you can use a professional interior designer to suggest changes in your planned refurb and, secondly, use the money from a business cash advance to fund this.
Refurbish a workplace
Given that your office or workspace is where your employees spend 40 hours per work, you may want to invest in refurbishing that place. But if workplace absence is rising, you may want to refurbish an unused area into an employee breakout space, to reduce stress and increase productivity.
Additionally, a newly decorated and refurbished space can also improve morale.
Schools as academies and free schools
We see this with schools, for example, when they became academies.
Often a new building with brand new facilities is added in a rebrand to raise standards, or a school is remodelled to change a culture.
You will have seen plenty of headline businesses that redeveloped to survive and thrive. Jessops, the camera business, were once in every town and, as a result, to survive, they redeveloped with fewer stores. Likewise, Jamie’s Italian stayed open in a few locations only from almost national ubiquity.
Argos, a survivor
Argos, for example, was firmly rooted in the catalogue empire of the 80s with pens and a warehouse modus operandi. But under threat, it redeveloped with a stronger online model, tied in with Sainsbury’s and became a click and collect point for eBay sales to increase footfall and sales.
The rise of pop up stores
Pop up stores, for instance, are becoming a popular and successful redevelopment strategy – you can read more on this here. However, a pop up model can certainly meet too the many reasons for expanding – tight space, increasing customer loyalty etc.
New trends emerge to expand your business
Clearly, your business may see new trends emerging that could lead to redevelopment opportunities. So you may witness demand for something in an area you visit that could be replicated in your area.
Redevelop a workplace
Redeveloping a workspace with new technology can decrease energy running costs longer term and, moreover, improve productivity. On the other hand, there is an exponential increase in co-working schemes too that your business may capitalise on.
Co-working is emerging with the so-called “gig economy” and you may see an opportunity to develop a space for workers to use that is profitable for you. Workers don’t always want to perch in Starbucks, we’d guess.
To sum up, Merchant cash advance UK is a flexible way to raise working capital of between £5,000 and £200,000. Most importantly, repayments are based on your credit & debit card future sales, which means you only pay us back when you sell to your customers.
Contact us today to expand your business
If you would like to discuss your businesses financial requirements in a view to using alternative business finance, get in touch.
However, you will find that the process to get started is simple, complete the online inquiry form and a business lending specialist will certainly contact you.