As a business owner, it’s important to continually improve your business model. If you stand still and stagnate, you could easily fall behind your competitors. Expansion is therefore vital. Even with the current uncertainty surrounding the UK economy, it’s vital to look to the future, rather than simply consolidating your position.
Here are a few tips to help you continue to improve and expand your operation.
Choose the best business savings account
You probably already have a business savings account, but that doesn’t mean you should settle for what you already have. Look at what’s out there on the market. Can you improve your return simply by opting for an account with higher interest rates? For example, looking into the best business savings account from Aldermore will guarantee you a fixed high rate for a period of 6 months to a year and it could be the ideal platform on which to build. Furthermore, Aldermore’s account can be opened in 15minutes, meaning you will start earning interest on the same day of opening.
Keep investing in your company
For the vast majority of SMEs, ‘austerity’ is always a buzz word. However, making savings and cutting back where you can, may often appear to be necessary; but it shouldn’t be forgotten that continued investment is always a catalyst to small business growth. For those small businesses currently operating within the UK, it’s always a challenging marketplace but by continuing to invest in research and product development, or perhaps looking at diversifying to take your company into new markets, these are some of the options which will grow your business.
Unlock money from your existing invoices
With a full order book, profits could potentially give you the funds to continue to expand however, if you’re continually waiting for your customers to pay, this doesn’t always translate to money in the bank at a time when you need it. Opting for a solution such as invoice finance is a solution to cash flow, as the value of your company’s unpaid invoices, allows you to free-up a high percentage of the funds almost immediately, whilst you wait for your customers to pay. Once they do, you’ll receive the rest, minus a small admin fee, from the invoice finance agent. This solution enables you to gain access to regular monies which gives you the option to expand, without overstretching as you’re not borrowing any money you don’t already have. It’s ideal to free up your cashflow.
When you expand or diversity your existing operation, it’s vital that you fully promote this and use all the marketing tools to make the consumer aware of your new strategy. You can look at advertising, direct marketing, exhibitions at trade fairs, and online marketing, as well as putting out a press release to the media. How you make people aware of your business in many ways will be determined by the type of customer you’re targeting and your budget.
Always think about your risk portfolio
When expanding into other areas, you always need to be careful. By extending the parameters of your business, you could easily find yourself in financial difficulties which means it is essential to put an adequate risk portfolio in place. This should include ensuring you have full and comprehensive small business insurance in place – whether you need public liability or professional indemnity, having adequate protection is highly advisable, as well as complying with specific legislation relating to your sector.
Ensuring your enterprise expands and evolves whatever the market conditions, is sure to set you in good stead for business success.