Expanding your small business can help ensure you stay competitive and in business. Recent research found that 82 percent of small businesses fail due to lack of capital (cash flow), and 55 percent of small business owners cite cash flow as the number one challenge to growing their businesses.
If you have been in business for some time, eventually, your business might reach a point where the next natural step is expansion.
Business expansion can be considered “worth it” when your expansion cost will be less than the projected profits you make from expanding. For example, if you see an opportunity where moving into a larger facility or expanding your current facility/operations would allow your company to ramp up production, that could be worth it.
It’s a key question every small business should consider before investing in expansion. If you invest money in expanding your business, it’s essential to make sure that the expansion makes sense when it comes to your business’s bottom line. Proper cash-flow analysis and projections should be made to make sure your expansion plans are worth it financially.
First Independent Bank can help in situations like these with business financing to grow your small business. Sometimes you might need to refinance existing debt, purchase new equipment, or lease or buy new space. In many of these situations, a business loan from First Independent Bank can help position you for long-term success.
