People assume they will have to pump money into their start-up business, but what they don’t always know is that to continue to keep their business strong and thriving, they also need to continue investing in their growth and internal development. The question, then, becomes how to afford keeping their growing business from becoming stagnant. Here are a few strategies and financial options for managing business expansion without sinking the ship.
First, you must decide what it is that you are looking to invest in. Do you want to update a software system? Open a new business location? Remodel your existing one? Add a product line, or develop a new product? Expand your marketing outreach? Decide where your focus lies, and then you can strategize how much you’ll need to invest. You may not be able to tackle all of your goals at once, but choosing one or two specific paths will help you to be intentional when it comes to your money and other resources.
As small business owners become increasingly uneasy about the removal of tax breaks, increased taxes and potential new costs for employee health care benefits, there are a plethora of articles cropping up everywhere on how to tighten the belt on the budget. Cutting costs on your insurance policies, voice and data plans, and credit card processing are always advised on the “to do” list and companies are often told to avoid cutting costs on customer service, marketing and employee perks.
These are all viable ideas, but they all miss the target. Instead of only concentrating on reducing expenses, why not focus on what you can do to shift your mindset over to increasing revenue? Continue reading
Starbucks, everyone’s favorite coffee mega-chain, made an announcement recently that had a few people scratching their heads; they are going to try and offer alcohol in one of their Portland stores. People don’t typically look for a shot of whiskey to go with their double shot no-foam latte, at least not publically. So coffee consumers all across the country are wondering what Starbucks is up to. They have already tried the model in Seattle, with some success, and some analysts are predicting that Starbucks is looking to expand into sit-down dining.
This raises an interesting question that many businesses face after a while; when do you decide to expand to other products? While selling booze may not exactly fit in your business model, there are plenty of linkable items that make sense together. A T-shirt company could expand to sell jeans, or a soda company may expand to sell water. Before making this type of change, you should ask yourself five key questions about the your plans and your company. Continue reading
Most business owners start their businesses with the hope that they will expand into other cities, states, and maybe even countries. This business growth is excellent for the economy, excellent for the business owner (is anyone against success?), and great for customers who want options closer to where they are. But moving a business into other areas can mean increased documentation and preparation on the part of the business owner. Continue reading