Additional funding

Trying to raise finance quickly to exploit a business opportunity can cause headaches. The source of finance most appropriate to you will depend on the nature of the business opportunity – be it a business acquisition, major project, market expansion or substantial customer growth. But it will probably depend even more on your company’s stage of development and the finance already available to you.

There are two main types of finance: debt and equity. Debt finance is more common and, in normal circumstances, it is easier to access. Debt finance options include: bank overdrafts, bank loans, hire purchase and leasing, factoring and invoice discounting, asset finance, credit cards and schemes such as The Prince’s Trust.

Equity investment options include: business angels, venture capitalists and regional venture capital funds.

From pitching to due diligence, a chartered accountant will be able to offer timely advice and help you to evaluate your options.

More support

• Financing a growing business
• Business Finance Guide
• Equity vs debt

Expansion

If your business is profitable and you are starting to think about expanding, your first step is to take an objective look at your operation. Assess its strengths and weaknesses, identify areas for improvement, examine what your competitors are doing and ask your customers for their feedback.

Selling more to your existing customers is a reliable way to grow; expanding into new sectors and adding more products and services to your portfolio is a riskier but potentially more lucrative strategy. With the right advice and support, you will be able to develop a strategy for growth that meets the changing needs of your current client base while reaching out to new audiences.

More support

• Get your pricing strategy right and increase business profitability
• Investment vs organic growth
• How to manage rapid growth

Exporting opportunities

With slow growth in the UK reducing domestic demand, ambitious businesses are looking at international markets for opportunities to expand. Before embarking on international expansion, it is worth considering the following points:

Research is critical – investigate new markets thoroughly on a social, economic and political level. Assess your product range and identify which products to export and the modifications that will be needed to enter different markets. Get your finances in order and adjust budgets accordingly. Be clear about your objectives and have a clear, realistic and durable strategy to achieve them.

Look at the big picture – try to consider all the options, even the most unlikely ones. Know your legal position in relation to UK Tax, export and import controls, and what documentation is required. Find out about the laws and tax system in your target marketplace. When exporting to the Gulf, for example, what impact will Islamic banking practices have on your business? Talk to freight/transport agencies to decide on the logistics of moving goods.

Consider the practicalities – how will you physically manage the operation? Will you recruit a team on the ground or have UK staff travel overseas? In some countries, companies are required to have a minimum number of local directors in the board. Will you operate through an incorporated body or set up a joint venture with a local partner? How do you intend to transfer funds from and/or to the UK? What impact will all this have on the UK operation?

More support

• Research your export markets
• EU trading post-Brexit
• Trading with the world post-Brexit
• Global Trade Community
• Department for International Trade (GOV.UK) 

Restructuring

Restructuring is the term applied to the act of reorganisation of the legal ownership, operational or other structures of a company, for the purpose of making it more profitable, or better organised for its present needs.

It is frequently used in terms of a business seeking to avoid insolvency by reducing its debts, such as by asking creditors to exchange a debt owing to them for a share of the business.

Restructuring specialists seek to stabilise the finances of a business, ascertain the remaining value in the business and seek to maximise that value for the benefit of the creditors, business owners and employees.

More support

• Restructuring and insolvency 
• Six signs that a business is in distress 
• Seven stages of business recovery