Business development · 23 December 2019

Five signs that your small business needs funding

funding

Starting any business can be tough. Initially, you have the struggle with capital, equipment and infrastructure and then you have to decide the direction it must take in order for it to grow.

This is a hard decision to make for many SMEs, effectively demonstrated by the British Business Bank, which conducted interviews with 500 small and medium-sized enterprise (SME) directors:

The results:

The results revealed that a third wanted to grow their business but were not sure how.

So, whatever the decision you make, you should expect to invest money in your business to develop it.

For many businesses, this cash injection comes in the form of a loan, enabling them to invest without concern of raising capital.

For business owners unsure as to whether they need to seek additional capital, the following five points stand as excellent indicators:

1. “But, we don’t have enough staff”

As any growing business owner knows, you can’t do it all by yourself. Staff are key to ensuring your business ticks over. Having enough staff in place is crucial to maintaining efficiency, especially when someone falls ill.

As demand increases, so will your need to have competent staff in place to meet it. A failure to do so will mean irate customers and burnt-out employees.

Business funding can give you the confidence to secure new or organic business because you will have the means to make new hires and cover their wages.

2. “This place feels like a shoebox”

Most businesses start out in someone’s front room or in a tiny office space. This might have been sufficient then but as you take on more stock or employees, space becomes a premium. Y

ou may have to rent or even buy larger premises to account for this. As your business grows you may decide to relocate nearer your customer base or find a suitable office that reflects the stature of your work and professionalism.

Moving is costly and it can take a long time getting the money in place to do so. A loan is a great way to ease the burden and ensure your business meets its full potential.

3. “I just don’t have the tools or materials”

It is reassuring to know that your product or service is selling. Problems arise though when your customers want MORE!

Once word gets out, you may quickly find that your ability to meet additional orders flatlines because you may not have the materials or processes in place to tackle this situation.


 
TAGS:

ABOUT THE EXPERT

Michael Foote is the founder of Quote Goat, a money-saving site for personal and business customers, offering leading comparison solutions in finance, energy, and insurance. Michael has over 13 years? experience working in the finance, insurance and currency sectors and is a self-taught expert in all things SEO.

Entrepreneur