Expansion. What does this word mean to you? For many business owners, business expansion brings on feelings of excitement for what the future may hold; while other experience the fear of possible failure.
But no matter what you think of the term business expansion, there are many factors to consider before making the leap. Are you ready to grow but fear that you will dig yourself into debt? With the right business loan, you’ll obtain the capital you need within your budget comfort zone.
Here are 4 Reasons it Might be Time for a Business Expansion:
- Your business has expanded and you must hire additional employees. Increased sales is a great problem to have, right? The only issue you face is the fact that you ran out of space for those new employees in your current office setting. Here are a few options:
- You find a different office space and relocate your office.
- You take out a small business loan and renovate your current office space. Consider this option first if you enjoy the current location of your office, or if it is conducive to the business's success. Pro tip: There might be available space in other parts of the building that you could take over.
Upon expanding, ensure that the spike in needed employees isn’t temporarily filling a seasonal business initiative. Once the season is over, you’ll be stuck with additional expenses and a decrease in sales.
- You need to purchase new equipment in order to keep up with demand. Maybe you've released a new product and it went viral which caused a spike in demand. In order to keep up with sales, you decide you will need new equipment that can handle new business.
There is no need to panic. Business expansion happens all the time and all that is important is the fact that you can quickly adjust to change. One option for keeping up with new demand is an equipment loan or equipment lease. Equipment leasing is a great option for keeping initial costs low but gaining access to the additional equipment you require.
- You work in an industry where technology becomes obsolete. Is it a requirement to keep up with new technology every couple of years? Or, are you in need of new equipment that frequently releases updates to increase efficiency? Equipment that becomes obsolete is a common issue in today’s ever changing technological world. An equipment lease encourages business expansion because you can return the technology for an updated model, thus increasing efficiency.
- There is another local business competing with you. Has this business been in around for a while, or is it new to the area? The most important marketing tip for beating the competition is offering something that is more appealing. Host a local event, implement social media contests, and encourage social sharing. These are some creative ways to encourage business expansion.
Alternatively, consider partnering with the competition. Chances are if you think the other business is your competition they think you are, as well. This is obviously a more dramatic approach and calls for careful planning and consideration.
Funding your Expansion
Once you've realized that business expansion is a positive move, the question becomes how to secure capital without putting your business in a poor financial situation. While it's likely you have set aside some funds for this reason, it’s a good idea to explore different loan options.
CMS Funding has been a trusted loan provider for over 20 years and is dedicated to providing companies with fast, hassle-free business loans.