Starting up a new business is no easy feat. It comes with a lot of dedication and commitment to get a business up and running no matter the size. Whether you have been running for one year, or 10 years, you may be looking at ways you can branch out into the local community and expand your business.
Expansion does come with plenty of challenges, one of them is ensuring you have the money to fund it. Here are some top tips on how to expand your business locally.
How To Expand Your Business Locally Top Tips
Are you wondering how to expand your business locally? Growing a small business is a tough challenge, with success determined by your ability to grow profits. While rapid growth won’t happen overnight, getting your business into the local market has many benefits. It gives you the opportunity to bring your business to a community level and really connect with your customers. Plus, word of mouth is an effective way of advertising which can come from this. Here are some top tips on how to expand your business locally:
- Get to know your customers: one of the biggest benefits of concentrating on your local market is being able to get to know your customers. By developing a relationship with them and understanding what their needs are, you can tailor your product or services to match. You can also ask for feedback from them, which builds a great rapport and helps your business grow.
- Focus on customer service: if you are hoping that word of mouth will take off locally, then customer service is key. Make sure you nurture each customer and give them the attention they deserve, so they are left with a positive experience with your business. This will encourage them to then recommend you on to others.
- Use social media: why? Because that’s where everyone is! You can see what your customers are saying about you in the online space, while also advertising your business. When someone comes into a group asking for a recommendation, you can be there! Facebook and Google also offer targeted advertising options so you can narrow it down and reach a local audience.
- Give back: one way to get your brand noticed is to give back to the local community. There are lots of ways you can do this, from sponsoring a local sports’ team to helping out a charity event. It’s all about marketing your business in the right way.
How To Expand Your Business Locally With A Business Loan
Now we understand how to expand your business locally, let’s dive into the practicalities of it. With any business expansion, there are costs involved. Often, you may not have the money to pay it upfront. From making sure you have enough employees to handle the customer service, to market research, managing social media and paying for advertising, the costs quickly add up. One of the best ways to manage it is by taking out a business loan.
A business loan allows you to borrow money from a financial institution. It can be:
Fixed or variable: this refers to whether you lock in the interest rate or not. A fixed interest rate presents less risk, but you can often save with a variable rate, depending on the market.
Secured or unsecured: a secured business loan is when you offer up an asset to attach to the loan. If you default on the loan, this asset is then seized by the lender. Despite posing a greater risk for you, secured loans often come with a lower interest rate. An unsecured loan is when there is no asset, so the risk is taken on by the lender. It often comes with a higher interest rate.
Taking Out A Business Loan
A business loan is the perfect option when it comes to expanding your business. It means you don’t need to have the cash available upfront, yet can still take the opportunity to grow. You can then pay back the loan down the track once the profits start coming in.
Before you take out a loan, it’s important to consider the amount you want to take out, and whether or not you can meet the repayments. The last thing you want is to send your business into debt. On top of this, opening up a line of credit for your business will also boost your credit score for any future loans.
Expand Your Business Today
Now you know how to expand your business locally, you might be ready to take out a business loan to get you on the right path. ALC Commercial is a non-bank lender that understand the financial needs of small to medium-sized businesses. We offer flexible terms and competitive rates, so you can expand your business today!
