There comes a time in every business when it can choose to either expand operations or try to maintain things with existing employees. There are key advantages of each choice, but in order to move forward, it’s necessary to add new skills and people to get the job done. Many a small business owner will hurt their chances of growing the business because of their bad credit. That’s because the only option they know is crawling to the bank for small business loans, expecting to get shot down. So they, and their businesses, suffer.
WHY NOW IS THE PRIME TIME TO EXPAND AND HIRE MORE EMPLOYEES
The good news is that this year has been phenomenal for small business owners, and therefore it could be a great time to take out small business loans to take your business to the next level. And yes, even if you have bad or poor credit, this doesn’t have to stand in your way of success. Some reasons why experts are saying now is a good time to expand business operations include:
Interest rates are at historical low rates, even with the Federal Reserve’s projected rate increases.
- National unemployment rates are staying low at around 5%, according to the US Department of Labor.
- There are a lot more ways to finance a growing business through reputable merchant cash advance and small business loan companies.
- The Council for Community and Economic Research advises that multiple states are providing generous tax breaks for companies to set up shop and hire more people.
- The entire global economy is experiencing tremendous growth for the first time since the recession, which means consumer spending is up.
- More financial companies like United Capital Source realize that sometimes bad credit happens to good business people, and they’re happy to give them a second chance.
SIGNS THAT IT’S TIME TO HIRE AND EXPAND YOUR SMALL BUSINESS
If you are not sure if this is a good time for your small business to expand and hire more people, particularly if you have been through rough times in the past, here are some signs you may need to evaluate:
- Your business has been approached by a potentially big client and you don’t have enough resources to complete the work.
- You have lost a few valuable employees in the past and they took their skills with them – time to replace them.
- The business has an opportunity to partner with another industry leading company or complimentary firm, but needs some updating.
- You simply cannot keep up with the demands of your clients while serving them the way you want to.
HOW TO HIRE NEW PEOPLE AND EXPAND THE RIGHT WAY
There are some ways you can start taking steps to expand your small business and ready your organization for a small business loan. First things first. Find out where your finances stand now and how much you will need to bring new people onboard. Get your higher interest debts paid down, and get all your other accounts up to date. Prepare your small business loan reports and paperwork.
Then, from the staffing side of things, you will need to conduct a complete skills assessment to discover what talent you need to hire. This may require working with an outside HR consultancy firm to provide you with an objective, but concrete staffing plan.
The Wall Street Journal provides some guidelines to help you with hiring new people. If you are in business for yourself, this may be the first time you have hired an employee. Determine your staffing plan based on the people who can bring your service or product to market effectively. For example, you may need a sales person to get you in front of new clients and a small team of skilled employees performing the work as orders come in.
Remember too that you are committing to your new hires in terms of having enough work for them, plus salary and in some cases, required benefits. There are also other costs of hiring people, such as workers’ compensation insurance, training and certification, and added administrative duties. As the business expands, the need for more work space and updated equipment may necessitate additional funds.
It can also be challenging to convince the most skilled or experienced employees to come work for your start up firm, without throwing in some attractive perks. It takes a special kind of employee to accept the career and financial risk of working for a small business. However, there are good people out there who prefer the family-like atmosphere of a smaller business and the chance to be part of a ground floor opportunity.
BUSINESS LOANS FOR EXPANDING COMPANIES WITH BAD CREDIT
If your business has bad credit, you may need to explore alternatives to bank loans, because you need to rebuild its credit. This is something that’s certainly possible. Look at how your receivables are currently operating. Are you collecting credit card payments or do you have large amounts of accounts tied up for months? Your bad credit business loan solution could be best managed by taking an advance on your future receivables or a merchant cash advance program.
Work hard to bring your small business credit score into a better range as you explore your small business loan options. This can help you to secure the best possible rates, and you will also have more choices in flexible repayment terms. Contact the most reputable small business loan firm that has a track record of supporting small business growth. Ask for several references and read success stories shared on the company website. You’ll find that by following the above steps your business will begin to thrive as you expand and take on new and better projects. Imagine the satisfaction of knowing you didn’t wait too long for opportunity to come your way.