Tips for tackling your business’s expansion

Expanding your business is something to be proud of — after all, it means enough people like your products that it’s getting hard to keep them in stock. However, it takes some finesse to ensure expansion goes smoothly for everyone involved. You’ll want to be careful not to expand too soon or too late — and you’ll also want to be aware of the resources at your disposal, including your friendly UBT bankers.

When is the right time to expand my business?

It’s important to notice when demand starts to consistently outpace your business’s production capabilities. Whether you’re running out of storage for peak season, turning away work because you don't have room to fulfill it, or managing a team that's spread across too many locations to communicate well, expansion is probably on the horizon. If possible, it’s ideal to build room for flexibility before you need it — this way, your business will be able to handle a much wider range of growth trajectory outcomes.

When considering expansion, make sure to also consider the context of your customer base. A strong base of loyal, regular customers will make your revenues more stable and therefore make it much easier to expand. Meanwhile, if your business has experienced a sudden spike in growth, it’s usually best to pump the brakes on any major expansion plans until you observe higher revenues for a few consecutive months.

What resources are out there to help my business expand?

Business loans and lines of credit. To help fund your expansion, it could be wise to look into a business loan or line of credit. Business loans provide a single lump sum of cash for a specific large purchase, and they’re best used for major investments like a new building to provide more space or a new piece of equipment to increase production efficiency. On the other hand, lines of credit provide a pool of flexible funds you can draw from as needed, and they’re best used to increase short-term cash flow or plan for emergencies.

Specialized lending solutions. No matter what sector your business is based in, we can offer lending solutions that make sense — and for some areas, we can also offer specialized expertise. For example, we have special teams dedicated to agricultural loans, church lending, warehouse lending, Greek house financing, fleet financing, and more. Click to learn more about the types of specialized lending solutions we offer.

Small Business Administration (SBA) loans. Whether your business was just established recently, is growing rapidly, or even both, SBA loans can make it easier to manage your small business’s growth. These loans are backed by government-sponsored loan guarantees, providing lower down payments and longer financing terms than conventional loan options. To learn more, check out our handy blog that covers some common questions about SBA loans.

Co-warehousing and coworking spaces at Elevator. Our friends at Elevator provide some fantastic resources that remove friction for small business owners looking to expand. E-commerce sellers, product businesses, trades and service companies, small distributors, and creators have all found success using Elevator’s spaces, which are provided on a month-to-month basis to allow for maximum flexibility. One monthly price covers all the basics that usually turn into a pile of separate bills and vendors: Wi-Fi, printing, and support handling packages and pallets.

Elevator’s spaces also provide a sense of community, with members commonly connecting with each other, referring business to each other, and even hiring each other. Plus, as your business grows, you can add space within the same building instead of uprooting your operations to move somewhere larger. Elevator has a new location in Lincoln alongside others in Omaha, Kansas City, Des Moines, and St. Louis. Learn more about what Elevator provides for businesses here.

We’re here to help

Whether an expansion is on your horizon or you’d just like to explore your options, our friendly bankers are here and ready to help you tackle your next move. Reach out today!