Business growth is what any small company is looking for, but what’s the best way to achieve it? Even if the UK economy isn’t in the best shape, business growth isn’t completely out of reach, it’s just a case of knowing your options.
A recent survey conducted by the EEF, the UK manufacturers trade body, showed that more than half of businesses interviewed saw red tape as a barrier to business growth. This in itself isn’t surprising – you’d expect businesses to see external factors as their biggest obstacles, from red tape to taxation, the economy, or inability to access finance. But could internal problems also be to blame?
Once a start up business begins to grow, recruitment begins – and that’s where the problems start. Recruiting new people into a business that’s often close to the entrepreneur’s heart is a tricky job, especially when dividing up management tasks. In order to grow most efficiently, there needs to be a proper structure in place to strengthen delegation and the processes of running the business.
Apart from this, however, what else do businesses need in order to grow? One of the most important things is funding or adequate finance to allow them to realise their goals. The banks are buckling down on business lending, increasing their requirements and often shutting out small businesses who are deemed too ‘risky’ to lend to.
This is where looking for alternative finance comes in. Other options include anything from asset based lending to crowd funding. In particular, invoice finance can be a flexible and accessible lending option for any business who issues invoices to customers on a 30, 60 or 90 day basis. Factoring and invoice discounting let businesses unlock the capital tied up in unpaid customer debts, letting you get access to funds within 24 hours, without taking on any new debt.
If your business is looking to grow, then it’s important to address issues that are both internal and external – this will give your business the best chance possible of developing to its full potential.