The small business world is in the midst of a revival. As the economy rebounds, more and more small companies are finding success and growth. According to Forbes research, about a quarter of American businesses manage to stay in business for 15 years or more, and it can be deduced that those who don’t are, at least in part, plagued by financial difficulty. In 2012, about half of all small business owners were financing their companies on personal credit. Many others were seeking loans, 23% of whom cited poor sales as the reason, and 15% of whom reported struggles in obtaining those loans.
Fortunately, things are looking up. Small business expansion loans are becoming more and more popular as many American business owners are experiencing greater success. Here, we’ll look at the issues surrounding small business expansion to help small business owners decide whether small business loans for expansion are the right choice for them.
Can I Benefit from Expansion?
It’s foolish to pretend that there is no risk involved with business expansion. However, there are also plenty of potential benefits. If you’re considering applying for business expansion loans, include these factors in your decision-making process:
- Economies of scale. Will expansion result in cost advantages for your business?
- Customer base. Will expansion expose you to new customers? Will your existing customers remain loyal through the process of expansion?
- Yourself. Is expansion going to overtax you in such a way that you might not be able to successfully operate the business effectively?
How Should I Expand My Business?
If you think that expansion might be right for your business, the next step is to decide how you want to expand. Not all types of expansion will work for every business. Research what could work for you and what resources you have available. If you’re considering expansion that goes beyond new purchases or internal activity, take some time to talk with local business brokers about the trends occurring in your industry. It also might be worth observing competitors who have expanded to see what they did and how they succeeded or failed.
There’s plenty to consider for businesses considering the pursuit of business expansion loans. If you’re excited about taking advantage of the economic upswing with an expansion, make sure you take some time to consider your options. An expansion is a big decision. Find more on this here: www.businessbacker.com