5 indications that your business is ready for finance
After creating a great idea, spotting a gap in the market and bringing on board a reliable team, you’re, no doubt, eager to realise your business’ full potential. But in order to unleash what you have to offer on your local community and beyond, you must have the means to drive growth and remain sustainable for the long-term. However, due to a lack of awareness, many UK business owners still aren’t sure about when they should consider applying for business finance. Yet, if your keen to invest in the future of your business but aren’t sure how to proceed, here are 5 indicators that will show whether you’re ready to apply for Business Finance.
Do you have a loyal customer base?
In order to tell if you’re trying to run before you can walk, check that your business has a reliable customer base first. Without a steady influx of customers paying for your goods and services each month, driving growth and supporting expanded day-to-day operations will be a difficult task to maintain. So if you don’t possess a loyal customer base, it’s urgent that you find out why that may be. Are you targeting the right audience? Is your message reaching them? Do you understand them? Can they afford what you’re offering? If the answer is no then you’ll need to conduct further research and review your approach.
Are looking to drive forward with your short and long-term goals? Unsure about what finance solutions are available and whether you’re eligible? Apply for Business Finance or learn more about how your business could benefit.
Are your goods and services reliable?
As well as ensuring that you have a reliable revenue each month, customers will only come to your business if they can be sure that your goods and services are reliable. The same sentiment will also be shared by investors and lenders, who generally prefer businesses who can showcase quality goods and services rather than just preaching expectations and unproven ideas. Therefore, if you’re already trading, can you show that your offering is being well-received by your customers, for example, customer testimonials, research and product testing results? Or, do you have a working prototype that, with further investment, has clear potential for improvement?
Have you created an effective business plan?
Next, if you are seeking to apply for business finance, lenders will always respond favourably if you’re able to present a detailed business plan, the reason being is that it allows them to form an in-depth understanding of your goals, expectations and mode of operation. As such, your business plan should outline:
- A summary of your business
- Sales and Marketing Strategy
- Financial Forecasts
- Hiring and managing strategy (What skill sets will you need to bring on board?)
- Operating Plan (What equipment and IT systems do you require?)
- Business Model
Do you have a financial plan?
In addition, you should create a financial plan for your business, discussing your short and long-term goals, as well as how you intend to raise the necessary capital. Besides, although many Business Finance products don’t impose any usage restrictions, you’ll often be asked about what the funds are going to be used for. So, regardless of whether you’re pitching your business online, applying to specialist lenders or approaching angel investors, this is something you need to work out beforehand. Plus, this will also help identify where your business stands financially, enabling you to create a financial roadmap outlining when and how you intend to progress from each stage in your business’ development.
How qualified are your team?
Finally, assess the knowledge and skill sets that you and your team possess. Even though you may have developed the idea for your business on your own, you’ll, no doubt, require additional expertise to make it go further. As such, you may want to consider hiring and promoting qualified team members to senior management positions. Plus, providing mentoring and training opportunities (internally or externally) can also be a great way of improving business practices and enhancing the competency of your team. This will, in turn, show that you have the ability to drive growth and maintain the venture, encouraging them to invest.
Are you ready to apply for Business Finance?
In business, preparation is crucial. In order to encourage reliable growth and sustainable operations, you must ensure that you have access to sufficient amounts of capital. However, despite being an essential resource, funding is often a difficult commodity to acquire. But rather than turning to your own savings, there are many Business Finance solutions that can help you to lay solid foundations for your business to growth and remain sustainable. All you need to consider now is which finance solutions to complement your short and long-term goals and how to apply.
At Rangewell, we’re an Access to Finance specialist who’s mapped over 400 lenders to offer you an overview of more than 23,000 business finance products. Our services are free to use and we’ll also guide you through the application process. So if you’re looking to raise for your business, apply for Business Finance today or find out more with Rangewell.