Expansion can involve increasing physical locations or offering more products or services. Businesses need a business plan to get loans. As a small business owner, it’s important to consider what is next for your establishment. If your business is one that has wide acceptance, you are most likely going to succeed in your crowdfunding campaign. Growth brings money into your business, but it also costs money to grow. Conclusion. If it falls, they go down. Richard Agu is a researcher, entrepreneur and freelancer, passionate about entrepreneurship and self-development. You gotta want it. A lender may be willing, for example, to offer a secured loan backed by the equipment the loan is used to purchase. By Dan Radak. Getting your business on the pathway from small to big requires putting together an expansion strategy that will bring you the result you want with the least amount of risk and effort. In todays fast paced economy, there are several ways of expanding your business. You might not necessarily pay back the money, but the investor monitors to see that you judiciously used the funds for the successful expansion of your business. However, raising money for your small business expansion is supposed to be easier than when you wanted to start. Banks are an important source of expansion capital for small businesses; just shy of one-third of small business owners report using a bank loan to finance expansion. The 7(a) is the SBA's most popular loan program. Yes, you can get your suppliers to give you more products or materials on credit while you pay later. Other state sources may be found under headings such as “Office of Economic Development”, “Small Business Development Council”, or “Office of Commerce and Economic Opportunity” (Illinois). Nothing is worse for the profitabilty of your market entry than searching a partner, concluding an agreement, adapting your product, training the partner and then to find out that the market is practically non-existent or that your partner doesn’t know how to open it. If your savings will not carry your expansion plans, you could take out a line of credit or make mini acquisitions off your personal loans. A number of business expansion grants are currently being administered by each state to assist in job creation with the hopes of boosting our present economic downfall. Really, all businesses should have one. This way you will open up new territory and expand your business in a new direction. ), A Company Description (including type of business, e.g. Did COVID-19 increase the demand for your product or service? Your objective needs to be clearly defined per time. By Richard Agu | Use the numbers from your first location to help forecast the costs. Every startup eventually has to go through the growth and maturity phase before it starts declining—unless it fails to get past the first few years. If you’re one of the businesses flourishing during the Coronavirus pandemic, congratulations! You may need additional equipment – everything from more computers to a backhoe. This will require a detailed marketing strategy , which should work in line with current strategies you are using. As a small-business owner, you can get up to $750,000 from your local 7(a) lender, backed by a partial guarantee from the SBA. You need to strategize your crowdfunding if you are going to taste success out of it. Business expansion grants may also be administered through state colleges, such as a program in New Mexico that is administered through New Mexico State University. How much revenue can you expect from the new location? These are some of the most popular and effective ways of expanding your business. 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