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Tracy Spence
Tracy Spence
Tracy Spence's Blog

The Right Time To Expand Your Manufacturing Business Using Manufacturing Finance

 

Thing are going well – sales are up, the workforce is happy and so too is your business bank balance.  There’s this new project you want to take on, but it would mean expanding your business.

Or maybe a new line you want to create that would mean adding to your existing equipment range.  But how do you know if the time is right to expand your business?

Things to consider before taking on manufacturing finance

Before you do anything, there are some things to consider that will help you decide if the time is right to embark on that new project.

1. Can you commit to it?

Start with the time and personal resources it is going to take to make this expansion happen – can you commit them to make sure it gets done?  If you don’t have enough hours in the day and are stressed because things aren’t getting done, it might not be the time to add something new.

2. Is the business in a stable position?

Expansion puts pressure on everyone, but you don’t want to let existing work slip so you need to make sure the business is in a stable position before you begin.  Can everyone handle what they are doing and leave resources free to add to the new project?

3. Can you get the financing?

Whether it means dipping into the reserve funds or getting some manufacturing finance you need to look at the financial side of the endeavour before you commit.  If you use all of your backup funds, what happens if something goes wrong and you need to repair or replace an essential item within your existing area? Don’t risk the whole business to expand if the finances aren’t ready for it.

4. Is the profit worth it?

There’s a lot goes into expanding your business in any way, so you need to make sure that the potential profit is going to be enough to put all the effort into it.  Our manufacturing finance means you can get the equipment you need in a seamless and hassle free process. You can also keep funds to reinvest in your business and benefit from tax efficiencies.

Options for expanding

When you work in manufacturing, there are lots of different ways to expand your business.  Maybe you feel you are ready but aren’t sure exactly how you want to expand. Here are a few options to consider.

A new location

If you want to start something new, then a new location can be an excellent idea.  It avoids stress on the existing location and makes the two a little separate. It also allows you to start anew with the location and get things just as you want them.

A franchise

A popular option today is the franchise business, and this can work for manufacturing.  You can also make good profits from it, just make sure you cover all of the legal sides of things properly before you start.

Business alliance

You don’t to have to create something entirely new but can instead form an alliance with another business who offer the service or products that you want to start offering to your client.  This saves the costs and work of a new location or an expansion but obviously means you don’t see all of the profit or have as much control.

There are lots of benefits to expanding your business but there are also some considerations to make sure you are clear about before you do it.  Once you know the answers to these questions, you are in a place to make an informed decision about your new direction.

Get in touch with Asset Funder to find out more about our manufacturing finance options so you can ensure you business as the highest quality equipment. Learn more about the other services we offer by visiting our website.



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