Growth is a business term thrown around a lot, but not everyone appreciates its importance. If a hairdresser has enough appointments to stay in business, why grow? Although without something growing they’d have nothing to cut, but seriously, why would a hairdresser need to have more appointments than manageable?

The answer is scalability.

When times are good, a growing business allows you to take on more stylists or trainees and when times are not so profitable, scaling back your business means you personally remain unaffected because you have enough custom to sustain the business and pay yourself a wage.

The principles are the same for any business, whether it’s retail, service or manufacturing. Grow when business is good and shrink when business slows. If you don’t look for growth when you can then shrinking the business when times are hard can seriously affect the business’ ability to function properly.

Recognising and Removing Obstacles to Growth

The obstacles you face can depend on your business. If you have a one-person operation, taking on extra staff can mean venturing into the unknown with employment law and payroll obligations. If you have a larger operation, you could need finance to bridge the gap from costs to profit while you recruit, equip and train new staff to a point where they produce profit for your business.

Understanding the obstacles to growth is the first step to removing them.

In most cases, obstacles to growth are less of a problem than you first anticipate. Sticking with the hairdresser as an example, things like HR and Payroll are areas of a business that many people outsource. This leaves the hairdresser to continue doing what they do best.

The one thing all industries have in common is a need for small business finance in some form or another. A hairdresser might need a small business loan for a new hairdresser’s chair or a restaurant may need small business finance to purchase new equipment that allows them to cook in higher volumes at busy times of the day. The important thing when look at finance option is choosing the right one for your business.

Small Business Grants

The small business grants available to specific industry sectors change all the time, but often these are the best form of finance available to a business. A non-repayable grant is a great way to push your business to the next level and who is going to turn down a free cash advance if it means their business will be more successful?

Secured and Unsecured Business Lending

Both of secured and unsecured business loans are fine if you have a lot of confidence in your business. If you are sure that the business is not going to experience dips in revenue that could affect its ability to maintain repayments to a small business loan then they are a great way to access finance.

Revenue Linked Business loans or business cash advance

Small business cash advances are a relative newcomer, but rapidly gaining popularity among business owners because of their flexibility. Repayments are a percentage of takings rather than a set amount regardless of your business’ performance that month. In other words, if your business slows, your repayments drop and if your business picks up it repays quicker.

Choosing Your Finance Option

Only you (or an accountant) can decide which finance option is right for your business. A grant is, without a doubt, the best choice for most businesses but their availability is the only obstacle. Most small business grants are restricted in some way or another and retailers receive less government support than most growing businesses.

Access Success 4/10 – Availability could be a problem

Cost Rating 9/10 – Zero repayment for many grants. Matched funding is often required

It’s good to have a secure working relationship with your bank and you may not need a small business loan at all if you chat with them about your circumstances. It’s common for a bank to offer and overdraft if you can show good accounts. Most applications backed with a thorough business plan stand a good chance of success.

Access Success 6/10 – Complicated process with demanding documentation requirements

Cost Rating 7/10 – A great choice with the right small business loan. Fixed payment can be restrictive

A business cash advance or merchant cash express is most easily accessible and usually requires less documentation to back up your request than other options. Proof of sales is the most important factor in approval for a merchant cash advance. This option allows you to borrow money based on your card sales each month rather than detailed projections.

Access Success 9/10 – High success rate is dependent on card sales.

Cost Rating 9/10 – Repayments are flexible and in line with your business revenue. No security required and no late charges.