There are times for that it can be lucrative for UK small business to grow. So if your business is in a period of growth, here are a few tips to help you avoid the growing pains.
You have reached an exciting milestone in your business because you’ve invested a lot of time and effort to get here.
However, it is essential to consider several important factors before you finally decide to push through with your expansion.
So, what are the things you should be asking yourself before growing your business?
1. Always check your tax obligations
As a small business owner in Australia, taking the next step would mean hiring several new staff for your business. This is essential because you will delegate some of the everyday tasks to your new team as you increase the volume of your services and products.
However, having new staff members will often mean new tax obligations. Keep in mind that you’ll be paying their salary as well as contributions. Speak with your accountant as you will likely need to register for PAYG withholding and payroll tax.
You need to make sure that you’ve followed all the tax guidelines and also have secure record-keeping practices to keep everything organized and make yourself accountable for all new taxes that you need to take care of now you have staff.
2. You need to effectively manage your team
If you plan on expanding your business, it’s essential to ensure everyone on your team is on the same page. You will depend on them during the whole expansion process.
They will also be sharing your vision for the future, so you need to remind them that their honest feedback and constructive criticism is always welcome in your company.
It’s always better to ask for people’s opinions, rather than just telling them what to do. Make sure everyone has the freedom to show their strengths, so they can bring value to your company and help you when you scale up.
That is why regular communication is paramount to your success. Developing a platform for your team to express their ideas and concerns will be your most asset when scaling up your business.
3. Systemising your business operations for efficiency
If you want to streamline your business operations, then you must systemise all your processes to increase your productivity. This applies to all aspects of your business, including onboarding, HR activities, customer relationships, and financial operations.
Although, streamlining the activities in your business doesn’t only mean purchasing the flashiest software to automate the whole process. It would be best if you also mapped out all the other means to reveal any inefficiencies or gaps in your day to day operation.
For you to effectively systemise your process, you need to create a process map that will help you see all the steps required to reach the outcomes you desire.
4. Know the costs of your expansion and your expected revenue
It’s also important to take note of all your expenses, especially those that you will potentially incur when you scale up your business.
You may want to move into bigger premises or invest in staff development, which might include courses and education certificates. You might also be thinking of getting new equipment for your office like tables, desks, computers or new software to automate your processes.
If these are the things that you want to achieve, then you’ll need to use a sales forecasting tool to aid you in determining your future cash flow as well as knowing your revenue growth, in light of your new expenses and sales history.
During these times, you might want to talk to a financial advisor to help you determine the best funding option for your business. They can also help give you an idea of how much capital you will need to fund this growth, but at the same time – keeping your business operating as usual.
5. Consider your options for funding
If you want to grow your business, you’ll need to consider all the points I have discussed in this review, including the most crucial factor in any expansion – capital! In fact, you won’t be able to scale your business without it.
Fortunately, there are several funding options available for small businesses in Australia, like unsecured business loans which the team at Bizzloans UK specialise in.
Consider getting an unsecured small business loan from Bizzloans UK. Contact us for more details.
No Security Necessary
The main thing that makes unsecured loans more attractive than secured loans is the fact that they’re no security. It might be an obvious thing to highlight but it clearly matters. You won’t be weighed down by the pressure and worry associated with having collateral hanging over you and potentially being lost to the lender if you fail to make repayments. If you don’t want to take the risk of losing your collateral, you just need to opt for an unsecured loan instead. It’ll allow you to avoid any risks associated with secured loans.
Build Up Your Future Credit Score
By taking out a loan and then paying it off on time, you will help to build or repair your credit score. Many companies are dealing with poor credit, but by taking out an unsecured loan with a lender that is happy to lend to companies with poor credit, you can start to turn the situation around. Meeting regular repayment deadlines shows the world that you are able to stay on top of your financial obligations and pay off the money you owe, and that will only help your business going forward.
Why Your Business Might Want to Take Out an Unsecured Loan
There are lots of reasons why your business might take out a loan, as well as reasons not to. You shouldn’t take out a loan to cover running costs, but if you want to do other things, such as the things we’re going to discuss below, an unsecured business loan can be ideal.
Grow and Expand
Most entrepreneurs have big plans for their businesses. They want to ensure that their business is one that’s got a bright future. So if the time has come for you to grow and expand your business, you should think about whether taking out an unsecured business loan might help you to do that. It could be exactly what you need to get your business moving in the right kind of direction. It takes money and investment to grow your business and a loan might just be the ideal solution.
Take on More Clients and Customers
If your business doesn’t currently have the resources to deal with more customers and clients, it could be time to scale things up. However, that’s something that costs money, whether you like or not. Taking out an unsecured business loan could help improve the resources your business has available. It could mean hiring more people so that you have the human resources needed to take on more clients and make more customers happy. The loan will cover the costs associated with doing that and it’ll pay for itself if you’re able to improve your profits as a result.
Fund a New Marketing Campaign
Maybe it’s the case that attracting new customers to your business is where your problems lie. It’s not always easy to get your voice heard and make people aware of why they should be taking notice of your business. An unsecured loan could be used to fund a new marketing campaign that gets your message out there and makes more people interested in your business and what it’s offering. So if you have an idea for a marketing campaign that you think might work but you don’t have the financing for it, consider a loan.
The chance to improve your business in the many ways mentioned above offers you a real opportunity that you might want to grasp. Secured loans can offer the same access to financing but come with more risks to your business. With an unsecured loan, you can reap all the rewards that come with having the cash to invest in your business without having to worry about the risks adversely affecting the business in the future. The chance to improve with fewer risks attached to that chance should not be ignored or dismissed.
The Requirements for Getting an Unsecured Business Loan
There are some requirements you’ll need to be aware of before you take out an unsecured business loan. These aren’t too harsh or restrictive at all, but they are important.
24 Month Limit
When you take out an unsecured loan from Bizzloans, you have to pay the loan back within 24 months. That’s the maximum repayment term that’s on offer. Of course, that won’t be a problem for the vast majority of businesses out there. It’s important that you look at the finances closely and decide for sure that this is something your business is going to be able to do. You’ll have a chance to do this when you get a quote from us, so you’ll know exactly what you’re signing up to.
Business Bank Statements
To ensure your business is in a financial position to take on a loan of the size you’ve applied for, you’ll need to simply submit your business’s bank statements. This allows us to ensure that we lend responsibly and don’t burden you with a debt that is too much for you to take on. It’s in both your best interests and ours that you’re able to handle the loan that you take on.
Photo ID
To ensure everything is correct and proper, and you are who you say you are, you have to submit a photo ID. This is common practice and ensures that all financial transactions are above board and in order. It’s very easy to do and needn’t be a headache for you. Once we are satisfied with your application, you’ve provided the bank statements and we’ve checked your ID, it won’t be long before you have access to the loan you applied for.
Getting an unsecured business loan for your company could be just what it needs right now. It’s a much safer option than taking out a secured loan and you’ll be accepted much faster. Don’t hesitate to get in touch with us here at Bizzloans if you’re thinking of taking out an unsecured business loan.
