Business growth is a worry in the mind of every business owner and trying to achieve steady growth can cause several problems. Having your finances under control and a clear vision for your business is a priority, but how can this be done?
Coleman & Co offer advice to all businesses in Lisburn, ensuring you have support for all financial needs. We aim to help every client achieve successful business growth.
59% of business believe that their prospects will improve in the next year. However, this isn’t going to happen overnight and making a significant improvement takes strong financial management. With one in three business saying their borrowing will also increase in the next 12 months, how can you continue business growth without having to owe too much money?
Whilst borrowing may seem like the easy solution to the majority of small businesses, it is not the greatest long-term option. If you are successful, it could work perfectly, but it is a big risk if your business does not take off with injected cash.
Is Borrowing Best?
In the last year, 38% of businesses believe access to finance has been improved, making it easier to borrow. Regardless of whether you are a start-up or well-established business, borrowing will always have its benefits. However, this does have to be paid back and could rack up expensive debts for your business. Borrowing can be a good option if:
- Investment Is Required For Revenue
- Reduces Risk
- Revenue Outweighs Investment
- Start-Up Costs Need Paid
If you are borrowing for the sake of having more money available, without making a positive cash flow, borrowing is not your best option. Many businesses can benefit from borrowing money, but it is not the right choice for everyone.
Budgeting & Forecasting
To plan for future business growth, it is essential that you budget and forecast correctly. 4 in 10 businesses fail to make the 5-year mark, which can often be due to lack of planning. Small businesses can often find it difficult to continue selling the same products for so many years and failing to budget early on could lead to your long-term demise.
Cash flow can become a major problem at any point for a business and budgeting should be completed constantly. By budgeting every part of your business and limiting your spend on unneeded items, you can build the amount of cash you have available in the future. By saving on a regular basis, if cash flow does begin to drop, you have the funds to reinvest into your business without a problem.
Your forecasting will ensure you are prepared for any changes to your cash flow. Whether you notice costs rising or revenue falling, you can always remain organised when finances don’t match your expectations. By creating a forecast, you will be prepared for this situation. You can then budget your business accordingly, ensuring costs will not outgrow your turnover.
Invest In Your Business
Business growth will only occur if you continue to invest in your business. Whilst budgeting is important to prevent overspending, you should still plan to inject your money back in. This is much more productive, rather than having your cash sit and collect dust.
By budgeting effectively, you will always have the money you require to invest and improve your business. With regular budgeting, business growth is always guaranteed, ensuring you will always have money available to your business.
If you would like to discuss the services we have available at Coleman & Co, contact our team today. We are happy to give information regarding all your requirements, advising and managing all business finances in Lisburn. Call us today on 028 9266 3599 or fill in our contact form to make an enquiry.