Why you should apply for financing if you've been operational for over a year
Running a small business can be a rewarding journey. As a business owner who has been successfully operating a business for over a year, you can probably identify areas of your business that are strong.
Without these components, you likely wouldn’t be where you are today. Still, no business is perfect, and there is always room for improvement. On the flip side, you can likely name a few ways that you could improve your business with additional working capital. This could be for hiring costs, so that you can expand your staff, or for equipment expenses, or maybe even an exciting expansion project. Whatever your needs are, it may be time to pursue small business financing options so that you can continue to grow your business.
In this post, we’ll discuss the benefits of financing an existing business:
1. You’ll be able to recognize industry trends – As a small business veteran, you know the ins and outs of your industry. You stay up-to-date on what your competitors and other businesses in your industry are doing, so that you can follow suit. Due to this, you will have good ideas when it comes to wisely using additional working capital. Maybe you read about businesses in your industry implementing certain technologies, and you’re ready to do the same. Or perhaps you’re interested in unveiling a new product that has done well for similar businesses. By being in business for at least a year, you’ve been able to learn about your industry and what it takes to make it big!
2. You’ll have experience to reflect on – After running your business for a few years, you’ll feel more confident in your company, and your skills as a business owner. You probably remember being a new entrepreneur, and being unsure of the areas of your business that you should be focusing on. Now, you have more experience to look back on, so you know the small business opportunities that will be best for your establishment.
3. You’ll know your monthly sales volume and other financial patterns – When a business is first starting out, the monthly sales volume may fluctuate. Hopefully over time, you’ve been able to identify your average monthly sales volume and other business patterns. One of the reasons that lenders are apprehensive to provide financing to newly opened businesses is that they have a limited time-frame to examine when it comes to sales. Since you’ve been operational for more than a year, you’ll have a financial history that lenders can review when determining your small business financing options.
4. You’ll have ideas for how your business can advance – Since you’ve been operational for over a year, you probably have a list of small business opportunities that you’re interested in pursuing. Plus, with time, also comes the need for repairs. A new business owner has presumably spent money recently to purchase new equipment, inventory and other necessary items. Since your business has been active for years, your location, equipment and other elements may be starting to show their age. By financing an existing business you’ll be able to maintain or improve aspects of your company that need some TLC.
Ideally, after reading this post, you understand why your business is ready to apply for small business financing options. You’ve had time to learn about your industry, build a strong financial reputation and recognize how your business can continue to progress. If you’re ready to apply for small business financing options, make sure to check out our application tips post here.