17 Ways to Grow Your Company

Jan 16, 2020

17 Ways to Grow Your Company

What do you think of when the topic of business growth arises? Perhaps you imagine new business locations. Or your mind might instantly go to the need for more employees. While they can indeed be components of growth, it can take many other forms. Whether it’s the physical expansion of your business or the more subtle refinement of your strategies, there are countless ways you can strengthen your business and maintain an upward trajectory.

The most important thing to remember is that all of your efforts should be guided by strategy, not just effort. It’s true, as the old saying goes, that “even a blind squirrel finds a nut once in a while.” But if you’re looking for effective and sustainable improvements, you need to do your due diligence. After all, knowing the landscape is the only way to chart a course.

“Before you even start growing your business, you need to do some research,” advises a business growth article from Forbes. “You need to know what your business is capable of doing with its money and other resources available. Assess your business. Look at all the analytics, stats, and accounting records that are available to you. Analyze how your business has done in the past. And when possible, make projections of how you think your business will do in the future, such as sales projections.”

This approach is advisable for all small businesses, whether they’re in their infancy or have been around for decades. And even if you’re content with where your business is today, it’s impossible for it to remain the same forever. There is no status quo in small business due to so many dynamic factors that are constantly changing.

While you won’t be able to control many of these external forces impacting your business, you have a substantial influence on how your business reacts to them. With the right strategies in place, you’ll be able to ride positive waves and also respond to negative situations.

Most forms of business growth require capital. On the small side, it might be paying $40 a week in Facebook advertising. More significant examples include building new offices or acquiring a larger fleet of vehicles.

Small business owners often use loans to fund their growth. There are loans of all shapes and sizes, but here are 6 of the most sought after products:

  • SBA Loans: The Small Business Administration (SBA) is a federal agency dedicated to helping entrepreneurs, especially those who are disadvantaged, get the funding and resources they require. These loans range in size from $50,000 up to $5,000,000, with low interest rates and terms between 10 and 25 years.While these loans are sought after due to their borrower-friendly benefits, they’re also known for moving extremely slowly. In some cases, you won’t receive money until 3 months after the application. If you can wait that long to receive funding, you’ll likely love what the SBA offers.The most popular types of SBA financing options include SBA 7(a) Loans, SBA 504 Loans, and SBA Express Loans.
  • Term Loans: These all-purpose loans are great for business growth because they can be used in such diverse ways. From equipment to staffing to marketing, you can use a term loan for just about anything related to your business operations.With a term loan, you can borrow amounts as small as $5,000. At the larger end of the spectrum, you can expect amounts up to $2,000,000. Once approved, the money moves extremely fast, arriving in just 2 or 3 days.Interest rates on these loans can be as low as 6%, with the repayment terms typically lasting 1–5 years.
  • Short Term Loans: There are times when your business growth initiatives require rapid action. In these situations, expedited funding from a short term loan can be advantageous. How fast are they? After you’ve received the green light from a lender, you can often expect the money by the next business day.It should be noted that you usually pay a premium for this convenience. Interest rates on short term loans start at 8% and can go much higher. Because they’re designed for speed, the repayment terms will also be expedited. Most last 1–3 years.It isn’t too difficult to qualify for a short term loan. If you have solid credit and your business has been running for at least 2 years, you will stand a good chance of getting approved.
  • Equipment Financing: Bigger businesses require bigger infrastructure. That’s where equipment financing comes into play. These loans provide as much as $5,000,000 to help you purchase equipment for your business. While this definitely relates to items like refrigerators and forklifts, the word “equipment” can also apply to less expected expenses such as software programs, solar panels, or office chairs.If your equipment needs are urgent, rest assured. These loans are known to fund in just 24 hours. Plus, they have relatively low interest rates that begin at 7.5%.To qualify for equipment financing, your business needs to bring in $50,000 or more a year, have a credit score above 650, and financial history of more than 12 months. One factor that speeds up the whole process is that the equipment you’re purchasing will serve as collateral on the loan.
  • Business Line of Credit: Here’s a flexible form of revolving financing that operates much like a credit card. You get approved for a set amount of money, usually between $1,000 and $500,000, then have continual access to those funds. Anytime you make purchases from the account, you simply repay the specific amount you spent.Interest rates for a business line of credit start at 8% and go all the way up to 24%. And it can take up to 2 weeks for the money to become available.To qualify for a business line of credit, your business needs to have been running for at least 6 months. Additionally, you’ll need to bring in at least $50,000 a year and have a credit score above 560.
  • Merchant Cash Advance: This type of business financing lets you borrow against future earnings. When the funds arrive in your account, you’ll then begin making payments by having an agreed-upon percentage of daily credit card deposits withheld.Merchant cash advances are versatile, so you can use the money for all sorts of business-related expenses. They range in size from $5,000 to $200,000, with the funds becoming available in as little as 24 hours.The downside of merchant cash advances is that the interest rates start as high as 18%. But if your situation demands easily accessible money in a short time, it may be worth it.

About the Author

Grant Olsen

Grant Olsen

Grant Olsen is a writer specializing in small business loans, leadership skills, and growth strategies. He is a contributing writer for KSL 5 TV, where his articles have generated more than 6 million page views, and has been featured on FitSmallBusiness.com and ModernHealthcare.com. Grant is also the author of the book "Rhino Trouble." He has a B.A. in English from Brigham Young University.

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