Traditionally, it’s been harder than average for small business owners to access capital from traditional lenders. Lack of funding is the top reason why many startup joins the junkheap of failure a few years from the launch date.
Things have changed a lot in fintech times. Obtaining funding for small business is easier due to the rise of online lenders that offer small business loans to entrepreneurs with average credit and short trading history.
This article lays out the different ways to expand your business, and the best financing options to your expansion if you don’t have the cash to cover upfront costs out of pocket.
Where to expand your business?
There are different expansion opportunities you can tap into to keep your business growing, including:
Do you have a business website? According to a Clutch survey, about 46% of small businesses in the U.S. don’t have a website.
If your enterprise belongs to the “no website” camp, go and create one right away. Blue Corona places the number of customers who research brands online before visiting their physical location at 80%. Thus, you’re missing a huge expansion and growth opportunity.
Again, taking your business online is a great way to expand your enterprise with fewer overheads. You can receive orders right from your site, package goods, and send them to your customers, no matter where they are.
Sell more products to your customers
Selling new products/services to your existing customer base is a great way to expand your business without increasing overheads or opening a new branch.
You can expand your business by adding new products that your customers want. You can also research different products/services competitors in your niche are offering and start integrating them into your existing inventory to expand your business.
Make sure you contact thorough market research to establish if there’s demand before launching new product lines.
Explore new marketing & sales channels
That’s a fancy way to say, “grow your customer base.” Digital marketing techniques are your best friend here. For instance, where does your target audience spend their time online?
Are they on Instagram, LinkedIn or Facebook? Meet them there with irresistible offers and direct them to your website or physical store.
Again, use search engine optimization (SEO) techniques, to net more prospects when they take to search engines to look for products and services related to yours.
To nail it here, make sure your website is optimized for mobile and speed. Then blog about your products and services as if your brand depends on it. Don’t forget email marketing!
Open a new branch
Launching a physical branch in a different country, state, or city is a great way to expand your business and market your product/services to new customers in another space from where you operate.
Perhaps, you’ve been receiving many orders online from a specific region. Establishing a physical store there is a great way to bring your products and services closer to your customers and slash shipping costs.
Expanding into a new territory is a significant investment. You’ll need to rent stores or office space and hire new employees. Thankfully, you can obtain small business loans from a reputable fintech lender to cover the upfront cost of a new store.
Best funding options to expand your business
Launching new products/services takes money, expanding your inventory, building a professional website, and opening a new store. Possible funding options include:
Bootstrap your expansion
You can use personal savings and plow back business profits to fund your growth ideas. However, it’s a slow process that can result in missed growth opportunities.
You can turn to banks, credit unions, VCs, or angel investors to seek expansion capital for your enterprise. They are known for turning away small business owners, so be prepared to convince potential lenders why they should fund you.
With the strengthening of the Internet and cutting-edge fintech, a number of fintech lenders have emerged offering startup and growth capital to businesses in a short call.
Fund your business expansion with small business loans
The downside to traditional lenders is that they come with strict requirements, bureaucratic applications, and long approval times. Again, starting your expansion can result in cash flow gaps and missed opportunities.
Therefore, your best option is to seek expansion capital from a reputable online lender. Fintech lenders have affordable paperless applications, fewer requirements, and offer loans in a short call. Once approved, you could be funded in 24 hours!
Visit the link in the intro to get small business loans in five steps.