Growth is a critical factor for the survival of any business in the long term. One needs to spend money to make more money and when we invest in business the rewards are reaped tenfold, thus making it easier to acquire assets, and attract new aptitudes.
When one invests in business, it helps you to take charge of your financial security and freedom allowing your wealth to grow and fund more investments for future benefits.
Business growth is intended to make the business become bigger, through increasing sales, a benefit that motivates business. Investing funds in any asset involves a trade-off as the investor foregoes the utility of using the funds for their investment in the present for some higher utility in the future
Investing in business growth creates:
- Brand awareness: when business grows, the brand is recognized and one is recognized as the author of the brand. This attracts more customers thus helping the business to expand its sales and also creating new opportunities to employ more staff. Growth also helps in the response to market demand, and capitalizes on the growing brand. This enhances business credibility by strategically broadening the supply base to increase both suitability and profits.
- Increase stability: Business growth is intended to promote the business income and stability enabling supply and sales of more products and services to the market. This forms the baseline for business sustainability over time
- Increase Profits when the business becomes larger, it allows one to take advantage of economies of scale because larger businesses can often get bulk discounts and better supplier credit terms. This means the margins will go up owing to lower costs and profits increased.
- Respond to market demand: This is achieved after analysing the market which will help to know if the product and services well suit the needs of the current market. Thus, once the market is large and concentrated enough to want the product at the price quoted it will sustain growth objectives. Many growing businesses see their profit increase alongside their operations.
- New Markets, Competition and Innovation: Expanding into new markets can help businesses establish a presence in locations where there is a particular need for the product or service. This can help to lower the impacts of overcrowding and competition struggles in the existing market. It will enable a stronger brand identity, further helping to stave off competition. Growth can also take the form of innovation. Investing in the redevelopment of the business will differentiate you from your competitors and increase your chances of continued success.
- People: Having the right people to help run the business is paramount, and it is also critical to provide for them. When this is professionally met the experience is fulfilling. Since this will be at the point where delegating operational decisions and management and operational decisions to others, will happen and the business will be independent and allow the founder to pursue personal matters. As America renown singer/songwriter Dolly Parton once said “You’re only as big as your biggest dream”
Lastly, every expenditure needs to be carefully considered in advance ahead of spend. A new asset should not be procured if it can be acquired used. It should not be bought at all if it can be rented. And it should never be rented if it can be borrowed. For business growth, expenditure should be kept low and conservation of resources needs to be done at all times.
At Springboard Capital Ltd, we build long-term relationships with our customers by financing their business growth. Find more information about our loan products here and get in touch with us on 0700 944 444
Article written by Jane Karimi – Jane Karimi is a relationship officer at Springboard Capital Limited. She is a highly driven and motivated professional who possesses the ability to build and nurture positive working relationships with customers while addressing their needs.
