Five tips: This is how to grow your business profitably

Dare to dream and prepare for growth

There are many questions regarding corporate growth and business development. Prepare for growth by writing down the questions and coming up with answers for them.

Don’t hesitate to consider how your company wants to grow and develop its business. Consider what growth requires. Do you need permits, investments, and more employees to grow? What are the market conditions? Is it worth giving up parts of your business and invest elsewhere? How to finance growth? Plan, design, and set a target for growth.

Make use of accounting expertise

State your growth targets to your accountant. Include them in your plans for growth. Consider the current financial situation of your company together. Try to predict how the company’s finance and cost structure will develop in the future if your company decides to grow. Consider what the future will then look like and how your business should be developed in light of the figures.

Learn more about various financing alternatives

Growth almost always requires financing Companies planning to grow should learn more about various financing alternatives and select the alternative that suits them best. The financing required by your company may be comprised of multiple financing alternatives, including financing offered by banks, finance companies, and venture capital investors.

Arrange collateral in advance for your financing

In exchange for financing, banks require collateral. Think about what your company can use as collateral for financing. Real assets or guarantees are acceptable forms of collateral. Real securities can include a company’s business premises, movable property, machines, vehicles, and investments. The owners of the company or the government-owned financing company Finnvera can serve as the guarantors. The bank’s professional will help you arrange your company’s collateral, if necessary.

Start financing negotiations well in advance

Fill in a financing application on the online service or make an appointment with a possible financier. It usually takes weeks from the start of the negotiations and having the money in your company’s account. We recommend you to start making an application or hold negotiations well before you actually require financing.

An electronic application is often the fastest way to receive financing. Append the latest financial statements to the application. If it has already been over six months since he financial statement, append an interim run for the current financial year to the application. The business plan, cash flow statement, profit budget, and information concerning other forms of financing would also be useful when processing the application. The bank’s professional will usually contact you within a few days and you will receive a financing offer tailored to your company.