Increased revenue doesn’t always mean increased cashflow
Rapid expansion can create an illusion of financial success. While revenue might surge, cashflow doesn’t follow that same trend. That’s because quick growth often requires substantial upfront investment, commonly funding with a small business loan or business overdraft. It’s now, more than ever, that you need to monitor your cashflow statement.
Demands on staff and resources
Scaling rapidly can add strain to your existing workforce and resources. Increased demands on staff without adequate support can lead to burnout, reduced productivity, and compromised quality. Balancing expansion with the necessary recruitment, training, and infrastructure development is critical to sustaining quality amidst growth.
Customer satisfaction
Expanding too quickly may impact the quality of service or products you provide. Over-extended resources might lead to delays, errors, or reduced attention to detail, affecting customer satisfaction. Maintaining the quality standards that built your business's reputation is vital and shouldn’t be compromised.
How to prepare for business growth
Preparation is key to managing and thriving amidst business growth. A thoughtful growth strategy ensures your business is well-equipped to grasp expansion opportunities. Prioritise infrastructure development, employee wellbeing and training, and anything your business simply can’t do without.
Monitor progress and adapt
During the growth phase, monitoring your business’s financial performance is more important than ever. Now’s a good time to use your bookkeeper and accountant to full effect. Together, they’ll keep you posted with what’s working and what isn’t.
Be prepared to adjust plans based on your financial reports so your business stays healthy despite its growing pains.
Speaking of experts
If this is new territory for you, seek help from people you trust. Aside from your bookkeeper and accountant, talk with a financial advisor and business mentor. Their expertise and experience can offer valuable insights and guidance as you navigate the complexities of business expansion.
Borrowing to grow your business
Savings only go so far. Depending on your plans, you might need a small business loan or overdraft to pay for them. Don’t worry, it’s common for small business owners to borrow money and invest it back into their business.
A Business+ Unsecured Loan can be used for any business purpose, like buying equipment, vehicles, or stock. Here are some of its main features:
- Borrow between $20,000 and $50,000 without using assets as security
- Make simple predictable payments with a fixed interest rate
- Competitive interest rates
A Business+ Unsecured Overdraft: linked to a Business+ Account can help your business weather your business’s ebbs and cashflows. It can be used to pay for more staff, stock or other day-to-day purchases. Its features include:
- Overdraft limit of between $10,000 and $50,000
- Only pay interest on what you use, not your balance
- Easy access with a Business+ Debit Mastercard
At a time when financial reports are flying all over the place, you can apply for these business finance options paperwork-free using Great Southern Bank’s Business+ online or Business+ app. There are no forms or contracts to print, it’s all done digitally.
Download our Business+ app for 100% in-app business banking.
Decision time
The question of whether you can afford to grow your business hinges on good financial planning, realistic goal-setting, and tapping into the expertise around you. It should be a calculated journey rather than a leap of faith.
It’s easy to get bogged down in the details but remember why you’re doing this. You’re a small business owner with big plans for the future.
Remember to check out our Business Hub. You’ll find heaps of free resources and plenty of helpful information to keep your business humming.
