Some side businesses start simply as passion projects. Others were always intended to replace one’s regular job. Either way, expanding a small side business is a dream come true for most entrepreneurs, but growth brings with it a variety of challenges. For those looking to grow their business, challenges abound: marketing, hiring, purchasing equipment, leasing space and securing funding, to name just a few. Are you and your business prepared to deal with those challenges? Don’t hesitate to take the plunge and pursue your dream — but first, ask these questions.
1. Do I Have a Formal Business Plan?
While failing to draft a comprehensive plan and running a small side business one day at a time is certainly possible, this approach won’t cut it at the next level. A business plan is necessary because:
- It helps you stay accountable and keep your eye on the ball.
- It makes you put details in writing and review them for potential pitfalls.
- Future partners and investors will want to see your business plan.
- It can be a powerful recruiting tool for key employees.
- It can help you set long-term benchmarks and milestones to reach your goals.
A business plan is far more than simply a tool to raise funding. If you’re serious about expansion and growth, you need a business plan.
2. Do I Have the Right Support?
Whether or not you plan to remain your only employee, you’ll need a support team to protect you and help get your business off the ground. Not counting actual employees, most small businesses will need most if not all of the following:
- An accountant. A trustworthy accountant will help protect your business in case of tax or other financial scrutiny and save you money, too. As expenses rise, so do the number of items that could be claimed as tax deductions or exemptions. Having an accountant who knows what you qualify for as a small business can save you significantly more than it costs you.
- A small business banking team. Many new small business owners and entrepreneurs make the simple mistake of assuming that their personal bank — whether a local bank or a national chain — can handle the needs of their small business. Rather than finding yourself the square peg a round hole at a regular bank, you should find a company that understands you and specializes in small business lending.
- A lawyer. While lawyers can be expensive, they can easily save more money than they cost. They’ll also protect your business and keep you apprised of potential regulatory issues. While the outright necessity of having a lawyer varies from industry to industry, savvy entrepreneurs and business owners will make sure that their bases are covered.
3. How Am I Funding My Business?
While some types of side businesses are set up to hit the ground running with little or no new expenses, most are not. One-time, upfront costs can be intimidating, but they don’t have to be.
Government-backed loans and grants like those offered by the SBA can help entrepreneurs get their businesses off of the ground. While the paperwork and legalese can be a hassle to deal with on your own, some agencies and companies have experience dealing with SBA loans and are set up to help you through the process.
If your business doesn’t qualify for an SBA loan, don’t despair. There are a wide variety of traditional commercial financing options available for those who qualify. From lines of credit to installment loans, there are a variety of options for all types of businesses.
Of course, some commercial financing options have lengthy approval periods or stringent qualification requirements. However, it’s easy to apply for other types of funding, including short term loans, which often don’t require credit history and are perfect for small businesses and startups.
Companies like Claris Finance specialize in advocating on behalf of small business owners and pairing them with lenders and loans that fit their unique needs. If you need funding or have questions about how Claris Finance can partner with you and help your business grow, contact them today.
About Claris Finance
Claris Finance is your small business funding solution. By treating small businesses as partners rather than customers, Claris Finance distinguishes itself from the usual one-size-fits-all bank. By helping business owners and entrepreneurs find a variety of funding options from the comfort of their homes and offices, Claris Finance is helping to fuel the next great wave of American innovation.
Sources:
https://www.entrepreneur.com/article/74194
https://www.sba.gov/loans-grants
