Growing a business is always a challenge, but it’s an even bigger one in the current climate. We may officially be out of the recession but that doesn’t mean the path is clear for SMEs to move forwards, and adapting to the changing economic outlook is high on the list of priorities. Businesses need to look for ways to boost efficiency, reduce costs and improve revenue streams whilst still delivering a great service, and there are several areas you’ll need to focus on to ensure you can reach your goals.
Organisation (and subsequent reorganisation) is vital, with it being important to continually plan and re-asses roles, structures and overall strategies to stay in-line with changing business objectives. Particular care should be taken when it comes to the financial arrangements with thorough planning being key to success, because you wouldn’t want to grow too quickly only to find out you run out of cash. Within that, you’ll need to consider your accounting and management reporting systems—you want a system that does more than simply meet your legal obligations to ensure maximum value can be gleaned from financial data—and effective budgeting and forecasting is of course essential to future success.
Then it’s time to look at specific sources of finance, and you might want to take a look at alternative measures. Not only are traditional lending options becoming increasingly hard to come by but these days it’s vital for companies to generate as much cash as they can internally, and that all comes down to getting paid quickly. Unfortunately that isn’t always easy to achieve without the use of factoring and invoice discounting, making these two funding solutions an increasingly popular and efficient way to fund growing businesses—use these asset-based finance solutions in conjunction with other measures and you could soon see the opportunities for growth even during this challenging climate.