If you’ve been holding off on expanding your business – what are you waiting for? The Australian economy is making a fine recovery and many industries are back on their feet after the scare of the global financial crisis. Meanwhile, for many small and medium-sized enterprises, business is booming and organisations are finally looking at kicking their expansion plans into full gear.
Ways to grow your business
When it comes to expanding your operations, the strategy you adopt will depend on the industry you’re in and the way your business is run. Here are some considerations for winning new business:
Upgrade to new technology – are your computers still running on Windows 95? Are your printers due for a serious upgrade? Upgrading to new technology is essential for staying up to date with the latest industry trends and boosting efficiency within your business – get a leg up on the competition.
Expand your range of products – one of the easiest ways to attract new business and keep your current clients happy is to diversify and expand your current range of products and services. Look for new opportunities and get feedback on what your current customers are looking for.
Break into a new field – tailor your services and offer your clients an all-in-one solution. Consider a strategic partnership with a relevant business to expand your service offerings. For example, suppliers can expand their B2B business by offering vendor finance and equipment leasing solutions for their clients.
Of course, for many small to medium-sized enterprises, capital costs can pose a significant obstacle to growing their business. If you’re in the medical field or run a printing business, upgrading or adding new equipment can be a substantial cost. You could take out a business loan to purchase new equipment, but many finance institutions are still “playing it safe” when it comes to doling out credit for even well-established organisations when it comes to asset finance.
Leasing equipment to grow your business
One easy, hassle free way businesses can obtain the equipment they need to expand their business is to lease the equipment instead of buying it outright. When you lease equipment, you’re paying for the long term use of the equipment, much like you would pay for the use of your office space or commercial premises.
In this way, you can obtain new machines and the latest technology without the costly upfront overheads – and you won’t necessarily have to deal with the stringent requirements of banks and standard lending institutions. And because lease payments are accounted for as an expense, your monthly payments can be up to 100% tax deductible – so it’s a great cash flow finance solution for your business.