You’ve heard the adage of most people too busy working in their business rather than on their business.
One of the most effective gains to make is looking for opportunities to quickly scale your business.
For many small people the idea of accessing finance to fast track business potential is not on the radar.
Whether it seems too expensive, or your paper work isn’t quite in order.
What you might be surprised to know is that finance can be more cost effective – and easier to get – than you might think.
Not only are there reasonable lenders out there (you need to know where to find them and what information to present to them) but the true value of finance is often realised in business outcomes – whether it’s improved competitiveness, owning your own office or simply a better business image.
Here are things successful small business and sole traders use finance to take their business to the next level.
#1 – Using Finance to raise capital
For big business, having fast access to funds means they can respond strongly to a range of business and market conditions. This is one area that small business owners can suffer. Without capital, it’s difficult to find the space to innovate, grow and compete. Sadly, many small business owners simply aren’t aware that they don’t necessarily have to miss out being able to use finance to raise capital and grow their business.
#2 – Invest in new work vehicle (or your own)
For many sole traders the car you use for the work is the car you use for life.
As well as practical…
Plus, professional work vehicles convey a very strong image about your business and how your traveling.
#3 – Upgrade plant and machinery – improve competitiveness.
Working with old tools can be inefficient and expensive. The potential gains you can make in competitiveness (production efficiencies) can soon outweigh the cost of finance). Plus are these things tax deductible even if you’ve used finance to buy them? Sill question maybe…
# 4 – Using finance to buy your own business – putting profits into property
Stepping into the world of business ownership is an exciting journey, often transforming your professional aspirations. Many potential business owners turn to finance as a means to realize this dream. With the right financial planning and leveraging, purchasing your own business becomes a viable strategy.
Here’s the rationale: Owning a business can pave the way for consistent income streams. As profits start flowing, a smart business strategy is to reinvest these earnings, and property often emerges as a top choice. Investing in property can provide long-term security, a hedge against inflation, and potential for asset appreciation.
This dual investment approach – owning a business and subsequently investing in property – can significantly boost your financial footprint. Not only do you gain the independence and freedom that comes with being a business owner, but you also create a tangible asset base in the property market.
Moreover, when the property is used for business operations, it can further strengthen the company’s financial position. In this scenario, the rent you might have paid to a landlord now gets channeled back into your own asset. Over time, as your business grows and property values increase, your net worth sees a corresponding rise.
Considering this strategy? It’s crucial to engage with financial experts and advisors. They can guide you through the nuances of using finance to purchase a business and subsequently investing in property, ensuring you’re positioned for success.
– consolidate debt?
