Instant Business Loans | What NOT to Do When Expanding Your Business
Every small business owner dreams of expanding business operations. But let’s face it, expanding your business is exciting and daunting at the same time. You’ll need proper and detailed planning, instant business loans, and advertising to get your business off the ground. Fortunately, with the right steps in place, expanding your business can be a breeze. To get you started, here’s a list of what NOT to do when expanding your business.
1. Expanding Without Proper Planning
You can’t start a business without a plan. Likewise, you need to update your business plan if want to expand your business. Proper planning down to the last detail will help prevent potential disasters that could cost hundreds. Your updated business plan should include hiring practices, marketing, crisis management, and more.
2. Making Informal Agreements
Small business owners often make the mistake of making informal agreements. But as you grow and expand your business, make sure to always put your agreements in writing and refrain from making informal, verbal ‘contracts’. To ensure that all parties will keep their promises, always create written agreements when working with lenders, partners, and other business transactions.
3. Insufficient Cash Flow
Did you know that 82% of small businesses fail because of poor cash flow management? Small business owners tend to overlook potential business expenses that come along with business expansion. You need to consider a number of factors, such as marketing, working with new vendors, hiring additional workforce, etc. All of these expenses can easily add up and could affect your established business capital. One way to avoid insufficient cash flow during an expansion is to open a business line of credit where you can withdraw funds from whenever you need it.
4. Rushing the Hiring Process
As your business grows and expands, you may need to hire more people. It’s important to sift through every applicant and avoid rushing the hiring process. Before you interview potential employees, you need to create a job description of the position you want to fill. Make sure to thoroughly list the required skills and qualifications fit for the job. Remember that the best candidate is worth the wait.
5. Neglecting Marketing
A study from Infusionsoft says that nearly 50% of small business owners are unsure if their marketing efforts are effective. It’s easy for business owners to slack off on marketing when there’s a constant influx of clients. However, keep in mind that your competitors are always on the lookout to steal your market share. By continuously marketing your business, you’ll be able to generate new customers, as well as retain your loyal clients.
6. Failing to Partner with Another Business
To maximize the growth of your business, consider partnering with a different company with a similar target market. For example, if you own a pastry shop, you can partner with restaurants or cafes and sell your products there. Another example would be flower shops teaming up with chocolate shops during peak season. When it comes to cross-promotion, the possibilities are endless.
Instant Business Loans for You!
While opportunities for growth are exciting, they can make or break your business. Whether you’re planning to expand to a new location or add more products or services to your menu, strategic planning is necessary.
Don’t let insufficient funds get in the way of turning your dream into reality! SMB Compass offer instant business loans for small businesses in the United States. To know more about the loans we offer, you can give us a call at (888) 853-8922or email us at [email protected].