Building a business is no small feat. As you grow there will come a time that you need to expand in order to keep up with demand and achieve the next level of success. This is where things can get tricky because when it comes to expanding your business, it takes money to make money.

Most entrepreneurs are neck-deep in their business. They have put everything that they have financially into their startup and sometimes even a little that they don’t have – so there’s little room for additional investments. So how do you keep up with growth and demand when you’ve already given all you had to give?


Use your resources

Your initial thoughts should be how you can generate more money through the business itself to fund future growth. You might have to get a little creative. Some companies, primarily those that are contract based, have unpaid invoices. Did you know that there are sites like factoringcompany.net that purchase those unpaid invoices for slightly less than what’s owed to you? They take that outstanding balance off your hands, and you get to collect a portion of what’s owed and write-off the difference. No collections, no escalation, and no legal battle. 

If that option doesn’t fit your business model consider creating additional profits through increased sales. Or look for ways to save money within the office. Are there areas that you can be outsourcing rather than employing a full-time employee? This might feel like a step back. But, a lot of companies are going this way, with this new gig economy we’ve found ourselves in. Hiring freelancers from sites like freelancer.com or upwork.com can be just the perfect way to save on payroll and increase funds that could go towards your expansion.

Consider a loan

As much as we’d like to keep our business debt-free, there may come a time that we need to borrow the funds needed to grow the business. If you’re a new business, getting a small business loan with a bank may be out of your reach. You may have to consider a personal loan. If your personal credit ranking is strong you should qualify for a signature loan or a line of credit. And since the approval is based on your personal credit history, you’ll likely get a lower interest rate and easier repayment terms.

Words of caution:

  • Keep in mind that this is still a loan. You will be responsible for its repayment whether your business succeeds or fails. 
  • A personal loan generally won’t amount to the high loan amounts you may expect with a business loan. Keep this in mind if you need to borrow a large amount.

Crowdfunding

Crowdfunding has changed how entrepreneurs and small businesses find funding. It’s a way of making money by asking a large number of people to give a small amount of money. To be successful with crowdfunding you’ll need to get people to believe in what you’re doing and give you the money purely because they want to. Check out sites like kickstarter.com to get an up-close look at active crowdfunding campaigns and decide if it’s an option for you.