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5 Tips to Boost Your Small Business

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Tuesday, 16 October 2018 07:56 AM Current | Bio | Archive

Every step in starting and growing your business involves availability of financial resources and making critical financial decisions.

Some individuals started their businesses without expansion plans, and when such businesses grow, it’s become somewhat difficult to access loans as a result of poor preparation.

A report by Fundera shows that obtaining enough financing is a problem for some: 27% of businesses surveyed by the National Small Business Association (NSBA) claimed that they weren’t able to receive the funding they needed.

For those one-in-four businesses, the most frequent problem was that a lack of funding was preventing them from expanding their business. It also sometimes left them unable to finance sales and forced them to slash employees.

How do you ensure that you’re strategically prepared to scale up your business?

Here are five tips:

  1. Get the Necessary Documents

Many people start businesses to meet short-term needs, forgetting that such businesses can grow and require more funds, employees, equipment and other vital business resources for optimal performance. The first crucial step you need to take in business is having the necessary legal paperwork for your business. This will not only help you to effectively deal with prospective clients, partners and investors, but will assist your business to get loans for expansion and other purposes.

  1. Make the Bold Move (Action)

Scaling up a business doesn’t just happen, it’s requires a deliberate plan and effort. If you have the funds, what you need is the right team, mentors and connections to help your business grow and plot your future strategy. When finances aren't enough, you’ll need to evaluate different funding options in order to get loans that will help your business goals and objectives. Don’t wish or assume that your business will expand with blood, sweat and tears. When you notice a little or significant growth, plan strategically for expansion.

  1. Build your Credit Score

Having a good credit score makes life much easier. Some of the benefits are low-interest rates on credit cards and loans, easier approval for rental houses and office spaces, the better chance for credit card and loan approval and better car insurance rates, etc. With a bad credit history, you’ll find it difficult to get a new credit card or loan. However, you can build your credit by choosing the right tradelines which will help you boost your credit score. And having an excellent credit score gives you a very good chance of being approved when applying for a credit card or loan.

  1. Poor Credit History Isn’t the End

Nationwide Corporate Finance reported that seasoned small business professionals end up looking to raise capital with a bad or poor credit history. Even if there are no actively bad marks on a director’s credit score such as defaults and county court judgments (CCJs), having no credit history can be just as bad because the lender has no evidence or history on which to base their finance decision making. You can fix your poor credit history by making deliberate plans to avoid previous financial mistakes. Ask yourself; what are those things that’ll improve my credit score? Do them. The most effective way to improve your credit scores is to pay off debt rather than moving it around. Also pay your bills on time. Even if you have missed payments, pay your bills on time after being late. It’ll increase your FICO Scores.

  1. Evaluate Financing Options

Finding the right funding options for your business begins with accessing information that’ll enable you to make crucial decisions. Scaling up a business should require some capital to get new site or location, expand your employee base, or develop a new product. Don’t rush to get loans; have a finance expert by your side and evaluate the funding options before you make that crucial commitment.

Richard Agu is a researcher, entrepreneur and freelancer, passionate about entrepreneurship and self-development. Currently, Richard writes for Entrepreneur.com, Goodmenproject.com, among others. Follow him on Linkedin.com by clicking here now.

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5 Tips to Financially Bolster Your Small Business
small, business, financially, bolster
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2018-56-16
Tuesday, 16 October 2018 07:56 AM
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