Knowing how to balance the two priorities of growing your business and maintaining business finances can be difficult. It can be very easy for a business to get into difficulty in their early years, as they seek further investment or take out loans and business finances in order to pay for initial start-up costs. The Guardian Small Business Network recently revealed that one in three businesses fail in their first 3 years, so it is vital to get the mix right between steady cash flow and maintaining a steady growth.
It is always going to be the case that some of these costly initial plans are vital for the continual growth of your business.
For example, in the early days of your business you will probably want to build a business website. Although this may cost you some money initially, a business website can really help to improve your online visibility and give your brand or professional feel overall. If you invest in search engine optimisation and information graphics, you will also find that your website is can have a successful online presence and will bring in more enquiries overall.
Also, right from the start it is crucial that you keep comprehensive records of the finance coming in and out of your business. This will keep you organised and help you have a good control over things. It is also a good idea to get into the habit of sorting through bills, invoices and payments as a part of your working day routine.
Other plans for the future growth of your business may include:
- attending trade shows in your chosen industry
- making direct marketing calls
- creating a marketing campaign
- investing in advertising
- investing in sales staff that can bring in profit
In order to invest in vital growth plans like this, you may need to have some financial backing. If you’re not lucky enough to have an investor, you may apply for business finance through a lender. If you consistently make payments towards your debts, this can allow you to build some credit. In turn, this can help you to invest in future plans for the business. As you continuously address your debt, your lender will see that you are a reliable borrower and may well lend further funds to you in future.
You need to make sure that you pay the minimum amount each month on your business debt, and if possible pay more than the minimum. This means that you can avoid some interest charges. Of course, when investigating the best kind of business finance for you, you should ensure that you pick a lender who charges you as little interest as possible.
You need to compare lenders and maybe even go and visit some banks to discuss your business plans in more detail. They may be able to offer you a rate which is not featured on their website or in their brochures.
Also, you must remember that if you get into financial difficulty, it is important to address this problem as quickly as possible. If you keep it to yourself, it can be tough to handle online. It can even become impossible to make the payments that you need, and you could quickly have your debt spiral out of control. By speaking to a business debt professional early on, you can avoid any such problem and get back into control and keep your business on track. There are many professional financial business advisers that can give you business insolvency advice in times of need or even if you feel that you may stumble across financial difficulties in the future. Hopefully, your business will have a long and successful future.