Grow Your Business

Expanding Your Business

No one is in business to fail and most business owners view achievement as the ability to successfully grow beyond their wildest dreams. There are many ways to grow a small business. The key is to manage the growth in such a way that it can be controlled. Keep in mind that growing too rapidly can sometimes be more devastating to your company than not growing at all. Controlling the pace allows you to fully research the market’s desire for your product and service, which can help determine whether the trends suggest that there is a strong market for your product or service today but no demand tomorrow.

Each of you as a business owner must assess whether or not growth is for you. If so, what are the alternatives and the most appropriate vehicles for expansion?

Keep a Journal of New Ideas

Small Business owners should keep a note pad available in order to jot down unique and creative ideas that may be promoted through the company. Generally, our most creative ideas come in the night when everything is quiet. A good habit would be to keep a pad and pencil on a nightstand. These ideas can take many forms, some are tried and true and have been proven in other companies, some may be spin-offs from a current operation, others are unique, innovative ideas that can be used in a series of environments SBIR, STTR.

Start With a Road Map

If you are currently operating a small business, you should already have a written business plan, or some type of strategic plan, to guide the direction of the business.

A well written business plan clearly defines the goals of the company and outlines methods for achieving these goals. Simply stated, the business plan helps you understand where you are and how to get to where you want to be. A comprehensive business plan is the premise for successfully launching any business venture for growth and expansion.

Conserve Your Resources

Most of us are excited about growth opportunities and the possibilities for expansion. Operations should remain simple until the company is up and running economically and efficiently.

Acquire Appropriate Levels of Financing

In order to grow a small business you will most likely need to raise money to finance your expansion plan. There are many alternatives to financing your business, including taking on partners, establishing a corporation and selling stock, or borrowing money from family, friends, or a bank. In addition, you may want to talk to a venture capitalist. In any event, you will need to write a loan proposal which describes your business, explains how you plan to use the loan, and your plans to repay the loan. A business plan will be extremely useful in writing the loan proposal. In asking for financing, you need to be very simply and specific about how much money is needed. Provide accurate projections and don’t be shy about asking for exactly what you need to optimally operate your business. A typical checklist for preparing for a bank meeting includes:

PERSONAL INFORMATION-personal Financial Statement, 3 years tax return, Summary of Business expertise and resume.

COMPANY INFORMATION- Last 3 years Corporate Tax return, Last 3 Years Accountant Prepared Financial Statements, 12-24 Month Pro-Forma Financial Projections, Accounts receivables and Accounts Payables Aging, Trade Reference, Current Bank reference, updated Business Plan.

GENERAL INFORMATION- Equipment List/Values Appraisals, and Construction Cost Breakdown.