As demand for green products increases, you will need to expand your business. Expansion could mean increasing the array of your product portfolio or breaking into new territories. Whatever the case may be, you will require funding and or investors.
Below are things you can do to ensure that you get the funds you need to expand your green business:
- A solid P&L
One of the things you have to work on to ensure that you get good funding is the P&L for your business.
Lenders have a tendency to view small businesses with a lot of suspicion, therefore your P&L is proof that your business model is viable.
Furthermore, the green business industry is one that most banks are still breaking into and they still don’t understand the industry trends very well. Supporting your loan application request with statements that show growth will work to your advantage.
There should be no holes in your revenue and expenses as this will make it difficult for the lenders and investors to arrive at a decision whether you are making profits or losses.
Though the investors will review your other statements such as cash flow statements to see if you have enough funds in your business accounts, your P&L is what will interest them when they want to know the financial health of your business.
- An impeccable credit score
Lenders will review the credit score of your business will be reviewed to determine whether you are a risk as a debtor. If you have a tendency to default on your loan commitments, it will be difficult for you to access a loan to expand your green business.
A consistent payment record is what the banks look at. It will not matter if you defaulted for a couple of months but then made up for it by paying for five months.
- A good marketing plan
A marketing plan is usually critical when you want to get funding, especially from investors.
The intention of a marketing plan is to show your investors how you intend to make your green business a success in the new territories.
Your marketing plan also shows that you have strategic relationships with qualified marketing agencies that understand new markets and they can deliver proper campaigns to reach all channels and all consumer groups.
Good marketing yields more sales; therefore you should take time to develop your marketing plan.
- An impressive personal resume
A resume is a summary of your work history, skills, capabilities, and accomplishments.
Investors will be curious to know how you came into the green business industry. If you show a strong background of working in the industry, you will inspire more confidence.
Your resume should also show you are an astute business person. For instance, if you have been in business for five years, you should be able to show how you have been able to forge new partnerships with suppliers, customers and other businesses.
When you have the above 4 things ready, you can approach investors or lending institutions for a loan to expand your green business.
About the Author
Agnes Auguste has 13 years’ experience as a risk advisor in the financial sector. She has referred many people to companies with good debt settlement reviews, where they receive invaluable credit advice and help. Visit her website for more.