For most businesses, things start to change at the end of the first year. After all, during the first several months of operation most, of the focus is on establishing the business.
After year one, the focus shifts to growth. While making a major investment at this time can be tough due to tight loan restrictions and lengthy application processes, year two is a great time for projects that lead to small business growth. This is the time to imagine what your business will look like in the next two or three years, set your goals, and determine how you can accomplish them.
Define and Fund Your Project
For some businesses it’s a new marketing campaign, for others it may be a new location, a major equipment purchase, or upgrades in products and/or services. Whatever the case may be, there are ways for you to create small business growth through with a combination goal-setting, planning, and working with the right funding partner. After all, while a typical business loan may be out of the question if your business has only a brief history, there are other ways that you can take your business to the next level.
Form Your Plan
Once you know what your goal is, start working on a plan make it a reality. Consider what you can do with the resources you have available, as well as the investments that you will need to make. Also, contemplate how you can prepare for changes in your business after the initial investment is made. Answer questions such as:
• Will my plan work if sales decrease?
• What will my return on investment be?
• Do I have the necessary business insurance, staff, and/or equipment to support this initiative?
• When is the best time to launch my initiative?
Taking these steps will allow you to tie a budget and timeline to your plan, and give you a better understanding of how your project can create small business growth.
Choose a Funding Partner
When you are ready to fund your initiative, don’t feel that your only options are traditional loans; these can be difficult for new business owners to obtain due to short financial histories and strict application requirements. Instead, select the funding partner whose solutions work best for your project. For example, you may want to consider funding that has flexible repayment options, such as a merchant cash advance which is repaid using a portion of future credit card sales.
Whatever your initiative is, setting goals, creating a plan, and seeking the right type of funding will set you up for small business growth in year two. For more information on funding options for small business owners, see our blog Three Ideas for Small Business Funding.
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