Can You Afford to Extend Your Business?
When business is going well, the decision to extend it shouldn’t be taken lightly because of the risk you take on losing out on profits while the extension is happening. In this article, there are going to be ways you can do this without having to dip into any profits you’ve already made and without having to stop business flow for any period.
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Budget your expansion
First and foremost, you’ll need to calculate how much money you’ll need to expand your business. For example, if you’re planning on opening up another store somewhere, you’ll need to work out how much rent it’s going to be, or how much it’s going to cost to build a new premises.
You’ll also need to think about the cost of a municipal law attorney for all of the zoning laws and advice you’ll need, as well as the equipment costs, how many staff you need to employ, and also the labor team that will put the shop together for you.
Get a loan
Once you know the amount you’ll need, you can head out to your bank and see if you can take out a loan to get the ball rolling. They will go through with you all of your outgoings and incoming money and then work out a repayment amount for you to settle on. Doing it this way will mean you’re able to set up your new expansion out of your personal money and still be able to live and run your business while the extension is underway.
Consider a business line of credit
If you’ve earned a considerable amount of revenue from your business over the years, you could go down the route of a business line of credit. This is where businesses are able to get some extra cash without having to worry about the APR as it’s usually much lower than a credit card would cost you. You’ll have to do some research, but it might be an option that you could take to expand your business successfully without putting anything on hold.
Can you afford to extend business: expand into the online world
If you’re choosing to extend your business in the sense that you’re taking it online, it’s actually cheaper than you think! You may not even need a loan to make this transition! Building and designing a website really doesn’t cost very much, especially now that most hosting platforms have a website builder included in the price plan.
Whether you’re choosing to become an industry leader by providing people with useful information or adding somewhere where people can purchase your goods online, you won’t be taking much money out of your pocket. It could begin making you money almost immediately if you set it up with the best SEO from the beginning.
As you can see, expanding your business doesn’t have to mean that you need to dip into profits you’ve already made and that there are other ways to leap into becoming a bigger name in the business world. Good luck!
