You’ve got a great idea. Now, make a plan to turn it into a great business!
Expansion can mean adding employees, acquiring new equipment, increasing production, or opening a new location. Once you’re ready to expand, update your marketing plan and confirm that your business is financially prepared. Then, consider the following steps:
2. New Funding
If your business is up and running but needs more capital, you can rely on previously used funding sources. However, funding an existing business still requires slightly different preparation.
You’ll need to make a solid business case for more funding. Produce a short statement with the total requested amount and specific reasons for it.
A business case should give assurances that new funds won’t be mismanaged. Include descriptions of your management team to highlight their skills and expertise.
Display that your business is doing well with financial history statements. Show how your business has grown by reporting revenue, expenses, and profit over time. If you don’t have a history of positive growth, explain why more funding will allow you to turn it around.
Show how your business will grow in the future with a forecast. Your business forecast can be based on intuitive judgment, quantitative analysis, or both. Show your projected revenue and expenses, and clearly explain how you arrived at those estimations.
Meet with local experts, counselors, and business mentors at a local SBA resource center if you need help preparing your business to get more funding.
Additional funding options for existing businesses are similar to funding options for a new business. You’ll have the same general set of options, which include small business loans, credit cards, and crowdfunding.
Existing businesses have the advantage of an established financial history with credit reports, business bank accounts, and internal financial reports. Lenders, investors, and even crowdfunders can use that information when they decide whether to fund your business.
If you have trouble getting a traditional business loan, look into SBA-guaranteed loans. When a bank thinks your business is too risky to lend money, the SBA may guarantee your loan — that way the bank has less risk and could be more willing.
Use Lender Match to find lenders who offer SBA-guaranteed loans. sba.gov/lendermatch