According to Merriam-Webster, “collateral” is defined as “property (such as securities) pledged by a borrower…
We know. It was tough enough to get your business up and running in the first place. The idea of expanding, therefore, is a daunting one. However, just because the process may present some challenges, it doesn’t mean that you should avoid the possibility of expanding your business.
Don’t forget that you’ve been able to get your company to its current state of success. Why not take the chance to take things a little further? Here are three reasons to consider expanding your business:
1. It will significantly grow your reputation.
It just can’t be helped. The public views a company with more than one location as a “big deal”. It’s the difference between having “mom and pop” status and securing the reputation of a major player in your industry. As Pay4.com describes, businesses that grow are considered to be more stable. This helps to grow your brand’s trustworthiness within your customer base.
“A one person business with limited streams of revenue is much less stable than a business with multiple locations and dozens of people on staff,” says the website, “This stability is also partly due to the way your business is perceived. As your business grows, people believe that you are more likely to be around throughout the lives of their products to supply spare parts and honour guarantees. If you grow your business you are likely to sell more products and services to this market segment.”
2. It will help you to grow your customer base.
Naturally, if you open up another location, your business is bound to attract more customers. Not only will expansion help to grow your popularity and inevitably boost your sales, it will also lower your risk of having your company falter by losing the relatively small amount of customers it already has.
“If you are a small company, the chances are that you have a small number of clients and work in just a few sectors of industry,” says StayOutFront.com, “This means that you are susceptible to a severe drop in income if some of those customers stop buying from you or a sector goes through a tough time. It is best not to have too many eggs in one basket.”
3. It will help to increase your profits.
This is what every business owner aspires to at the end of the day, isn’t it? Expanding your business makes it larger. Larger businesses are able to take advantage of their statuses within their marketplaces. As Pay4.com explains, bigger companies are often able to secure bulk discounts and better supplier credit terms that help them to drive down costs and increase profits.
“The bigger the company the more likely that you can reduce unit costs,” agrees StayOutFront.com, “For example, if you need a receptionist, the costs will be the same whether you have 20 or 50 people, but the financial impact in percentage terms is clearly different.”
At Synergy Merchants, we’re very proud of the fact that our unique merchant cash advance program has helped many a Canadian business owner to expand their businesses. For more information, please don’t hesitate to call Synergy Merchants at 1-877-718-2026 or email us at email@example.com.