As a small, start up business, you’ve dreamed of this moment all your life. You’ve read countless blogs about how to grow your business and how to effectively prepare for growth, and now, it’s all happening — but, are you ready?
Preparing Your Business For The Next Level Using Non-Recourse Factoring
Rapid business growth in any business can be an exciting, yet challenging time. As more and more customers are looking to do business with your company, you can feel as if you’re needed at more than one place at a time. Using non-recourse factoring, you will be able to have the funds, tools, and confidence you need to take rapid growth by the horns.
1. Make a Budget
Everything in business revolves around a solid budget. Without proper budgeting, you’ll never fully understand your profits and ROI’s. When facing rapid growth, budgeting is crucial. As you are getting more and more customers, your cash flow tends to suffer.
Many business owners think that growth brings more money — and it does, but it takes extreme cash flow management. As you are fulfilling more jobs, your cash flow becomes less and less. To combat this issue, turn to non-recourse factoring.
With non-recourse invoice factoring, you will be able to get immediate cash for your outstanding invoices, without the risk to your business. This is accomplished by allowing a non-recourse invoice factoring company to purchase your invoices to grant you an advance of up to 96% with little rates.
Unlike getting financing through a bank, you’ll never have to wait up to 30, 60, or even 90 days to get funds. You’ll get paid for your invoices in just 24 hours or less. Because the factoring company purchases your invoices, they take on 100% of the risk if your clients fail or neglect to make payments — keeping your business’s credit and cash flow safe.
2. Consider Your Current Workspace
With rapid growth comes expansion, and with expansion comes the need for more physical space. You have more people, more inventory, and more equipment than ever before. Are you cramped in a small office space? Is your warehouse overflowing? Now’s the time to make an adjustment in your current workspace.
Consider if a renovation or a complete move is the best for your business and act fast. The longer you stay in your current, small space, the harder and more time it will take to move. Because you have utilized non-recourse invoice factoring, you will have a strong source of working capital attached to your name, making it easy to get approved for the space your business needs to thrive.
3. Get Your Staff Involved
Growth is an exciting time not only for you, but for your employees. Although times may be a little chaotic and busy for them, your business’s expansion can mean great things for your employees. With expansion comes employee benefits, raises, and more.
It’s important to keep your staff involved in the expansion process so that nothing is a major surprise to them. For example, if you are planning to move your workspace to a different city, it is important to notify your employees before you make this major change.
Your employees have been with you in your beginning days and have helped your business get to this exciting time — so don’t neglect them. This will allow them to have a sense of pride and ownership in the long run and will create a better atmosphere around this exciting time.
4. Don’t Forget About Your Customers
Your customers are the source that keeps your business thriving, so don’t leave them out either. When businesses neglect or poorly manage their customers, they often take their business elsewhere. Tell your valued customers about your expansion and have your employees dedicate more time to them. By maintaining your personal service is key to keeping your customers from jumping ship.