08 Mar How to achieve the business you dream of with financing
Posted at 10: 30h in Credits for SMEs 0 Comments
Having a business of your own represents great personal satisfaction and a step closer to achieving the much longed for financial freedom. However, the road can become difficult when you face situations that impede the growth of your company and discourage your hopes to continue with the project.
Next, we will tell you how you can change the direction of your business through the use of financing.
# 1 Make a strategic plan
Having a strategic plan is essential to be able to define the direction you want to give your business. You must include a general objective and from there develop the necessary actions to be able to fulfill it.
If your goal is to “capture a greater amount of the target market”, the necessary actions could be carried out in the marketing and product area. For example, create campaigns to promote your brand, improve your customer service, create an after-sales service, offer a greater variety of products, train your employees, among others.
# 2 Analyze the financial state
Once you have your strategic plan, you must analyze in detail the financial status with which you account. Add all the income and expenses that are generated and do not forget to include, fixed expenses, payroll payments, raw materials, and so on. This will help you to know the capital with which you account and thus decide how much you need to finance your project and improve your business.
Although it seems to be a very simple step, make sure everything is well accounted for. You can support yourself from your administrative staff or perform the necessary calculations. If you also have the need to know the profitability of your business, in this other post you will find the formulas to do it in just 4 steps.
# 3 Choose the best financing
When you have already achieved the figure you need, it is best to search and choose the financing that best suits your needs and possibilities.
Look for the options that traditional banking offers, compare among them and do not discard the other financial institutions that exist. For example, SOFOMES, which in our country use online platforms to offer loans and thus improve access and process to request financing.
Compare between the amounts and interest rates they offer but also in the requirements they ask for. Both banks and sofomes set different conditions to grant them. On the one hand, traditional banks ask you to leave real estate as collateral or present an endorsement, which for many SME owners may be a factor that limits their opportunity. While with some SOFOMES, a guarantee is not necessary and they can offer you the same amount as a bank.
In this other post you can find the differences between asking a bank or ask a SOFOM to help you a little more.
# 4 Run and measure the results
At the moment you get your financing you should concentrate only on carrying out your strategic plan.
In our Report on Growth and SME Credit 2019, we learned that only 40% of the entrepreneurs surveyed use their loans to meet their long-term objectives.
This is why it is important that you really follow the necessary actions and invest your resources in it. You will see that your business can improve, stabilize and accelerate its growth.
Also, it is essential that during the execution process you measure the results you are getting. Check the performance and growth metrics of your company and compare them with the ones you get while executing your plan. This will give you a more accurate view of what is working and what you need to modify.
Measuring can always help you to be aware of the opportunities that arise in time and save more money, time and effort.
Achieving the business you dream is possible and even more if you can help with a financing, remember that investing in a business is essential to ensure its permanence and future.