Summary: In today’s podcast episode, Jan Cavelle and Stephen Halasnik from Financing Solutions discuss methods in which small business owners can scale up their businesses. These solutions are providing small business owners with the expertise necessary to grow their small businesses exponentially.
Create a solid financial plan
One way that businesses can increase profit is by taking on larger projects. Business owners should ensure that the business has the funding necessary to explore new ventures. Putting a focus on financial planning allows business owners to be. Better prepared when new business opportunities arise. When scaling up your business, increases in revenue cause an increase in the need for financial security and planning.
Another aspect of solid financial planning is being prepared for recessions. Recessions within an economy are inevitable, therefore small businesses should be prepared to make the necessary cuts in the budget to maintain productivity. Often, payroll is one of the first areas that receive cuts in funding. Small businesses should implement technology and processes that continue productivity and make up for the cuts in funding for other areas.
Scaling up your marketing efforts
A large part of a business’s success depends on its ability to influence consumers. A business’s marketing activities should increase when trying to grow the business. Increased marketing efforts often help to grow a business’s consumer base and increase sales. Some businesses participate in affiliate marketing which involves the business rewarding affiliates for promoting their products or services. Affiliates can also help businesses build their brand name through association and partnerships.
Lead generation is another aspect of marketing that helps small businesses scale upward. Key components to lead generation involve figuring out your cost of acquisition, finding gaps in the market, and putting a focus on differentiation. Being successful in lead generation allows small
businesses to acquire prospects inexpensively and increase profits based on the increase in clientele.
Make your small business attractive to funders
Many small businesses look to funders such as banks, venture capitalists, etc. to fund different activities. It is important for small business owners to know that when borrowing money, banks typically look for equity possessed by a small business owner that can be used to pledge to the loan, something that most small business owners can’t afford to do. Cashflow generation is one of the easiest ways to attract funders to your small business. Small business owners benefit from using factoring or invoice financing to generate cash flow temporarily and increase profit margins, making the business more likely to receive funding from outside sources in the long run.
Small business owners can also benefit from joining organizations centered around entrepreneurship. Learning from others’ experiences regarding receiving funding can be more useful and relevant to small business owners than simply conducting an internet search. Entrepreneurial organizations can provide small business owners with the information or industry connections needed to become prime candidates for funding.
About Jan Cavelle
Jan is an entrepreneur from the UK who has a few decades of running micro and small businesses behind her. She is very familiar with all the challenges that go with that, having started one from the kitchen table when her children were small and she was a single mother, to go on to build that into a multi-million turnover business. Jan has put her entrepreneurial experiences together with her passion for writing together a book aimed at helping entrepreneurs to grow their businesses during the big leap of 1-10m. The book is called Scale for Success and is now out in the UK, US, and Australia, published by Bloomsbury.
About Financing Solutions
Financing Solutions provides an easy-to-setup unsecured business line of credit to small businesses. The small business financing product is a great cash backup plan that costs nothing to set up, nothing until used, and is inexpensive when needed. Financing Solutions is rated A+ by the Better Business Bureau and 5 stars by the BBB/Google Reviews.
Unlike a traditional business bank loan, our business credit line requires no collateral or personal guarantee (except in cases of fraud) making it an excellent alternative business financing option. Small businesses often used their line of credit for short-term expenses, working capital, to make payroll, or for a business investment especially when business cash flow is temporarily down.
Get a free, no-obligation business line of credit quote by filling out our simple 2- minute business line of credit application here.
Remember: The time to set up a credit line is when you don’t need it.
Note: Financing Solutions donates 10% of its profits to various nonprofit charities