Businesses grow and expand in different ways, depending on facilities, size and service offerings.
We explain what types of expansions you could consider for your company, what your development costs might need to cover, and how an expansion can help fund your business growth.
Growing your business from within can be difficult, as there are many routes a business can take. One way is to invest in your current teams and services.
From providing new services through training to purchasing new equipment, offering the means to do more as a business, such as by building up your existing team, can prove beneficial and help fund and further an expansion.
Similarly, your business could expand by absorbing the skills and expertise of another business. You could buy other businesses to grow your company, and utilise their premises, staff and services to enhance your own.
It’s important to mention that buying other businesses can be an expensive and lengthy process, especially when arranging the purchase and transfer of ownership with legal teams. You also might need to address issues with management and introduce new methods of working to your expanded business, which could require retraining and hiring more staff.
Expanding your product or service offering can help add new revenue streams to your business. Through a product expansion, a business can increase the number of items it sells or services it offers to clients. This could include seasonal products and accessories in a retail business.
This can mean finding products that suit your business and your suppliers, and having to fund costs to market your new products.
Market expansion is the process of having your business move into new areas, alongside existing services. These services can be related to each other, such as a clothing manufacturer moving into retail.
The idea with this is that the two different businesses are sympathetic to each other and help promote growth. In the case of a clothing company, this could involve opening more stores to provide both further outlets and more demand for clothes to be manufactured.
Any expansion of your business can be expensive. You might need to pay for a multitude of things, including:
Funding an expansion can have a serious impact on your business’s finances. However, in some situations, a cash injection could be what your business needs to cover the costs.
FSB members have access to our Cash Advance service. This small business loan can assist companies looking to expand.
The unsecured loan provides quick access to funds, and repayments are designed to have minimal impact on your business’ bottom line. Repayments can also be arranged as part of credit and debit card transactions or a monthly direct debit.
The cash advance provided by FSB can help businesses in a number of areas, including:
If you would like to learn more about business expansions, or how our loan could benefit your company, visit the FSB Cash Advance page or speak to a member of our team.
In addition, we also offer members access to the FSB Funding Platform. The platform offers FSB members direct access to hundreds of business funding options with a single application. We help you find the right funding for your business, save you precious time, and lower the overall cost of finance. Find out more here.
Complete one simple online application and our platform matches you with the largest panel of business lenders in the UK.