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Finances for Business Expansion

May 28, 20242 min read

Some of today’s most successful companies started in a garage. The first Apple computers and Mattel products were made in a family garage. These organizations’ start-up stories prove that great ideas can sprout from even the humblest of settings. Operating a business from a garage, a backyard shop, or a makeshift office in the spare bedroom may be practical short-term. However, as the company grows, the need for space grows, too.

The Expansion Dilemma: Balancing Ambition & Finances

Entrepreneurs change their focus as they move from a development and start-up phase to the growth phase of their business. Instead of thinking about launching a business launch, they’re ready to grow and expand. Companies ready for expansion are looking to invest in personnel, facilities, equipment, buying out a competitor, and other growth strategies. However, the looming question is: How will they pay for it?

A Strategic Move: Leveraging Low-Interest Business Loans

If cash is short, applying for a low-interest business loan is a good financial strategy. While many small businesses are averse to debt, being debt-free can hamper a company’s growth or worse, cause an organization to fail. A small business will remain at a standstill or collapse without the necessary funds to operate. This financial saying rings true: You need to spend money to make money.

 

Navigating the Borrowing Process: Steps to Secure Funding

When small businesses are ready to borrow money, their first step is to contact the Small Business Administration and talk to a rep about lending options. The second step is to meet with a local, trusted lender and explain their expansion ideas.

 

The Role of Bookkeeping: Key to Securing Business Loans

Lending professionals will analyze an organization’s business plan and financial accounts. If a company’s bookkeeping is out of date, a lender is more likely to reject their loan application. A clean set of books shows where a small business is earning money and spending money. A solid credit history shows the organization paid their bills in the past and is likely to pay their bills in the future. Plus, up-to-date bookkeeping clearly shows a company’s profits and viability. Essentially, diligent bookkeeping improves the chances of being able to borrow money. Lenders can approve a loan quicker when a borrower’s finances are in order.

 

Prosperity Bookkeeping: Your Partner in Business Expansion

If your company is considering business expansion, Prosperity Bookkeeping can help. Our bookkeepers use QuickBooks Online accounting systems to provide key financial documents. We verify financial records and forecast economic, business, and fiscal trends. Work with people you can trust to do your bookkeeping. Prosperity Bookkeeping is highly skilled, easy to work with, and passionate about bookkeeping.Contact us for a tailored bookkeeping solution to expand and grow your pet care company or another small business.

Joan Koehne

About the Author: Once a mild-mannered reporter and editor, Joan Koehne took on the persona of her alter ego, Wonder Writer, to launch Writer to the Rescue, the content writing division of Packerland Websites. Wonder Writer is “saving the world one word at a time” with power-packed content marketing for digital and traditional media outlets.

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