Strategies for achieving business growth

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Figures released by the Office of National Statistics (ONS) last month showed that the UK economy experienced its best performance for six years and has now passed its pre-financial crash peak. The US, Japan and Europe, meanwhile, are all lagging behind. So how can you take advantage of the positive environment in the UK? Below, we explore some of the best ways to achieve growth and take a look through some of the many resources available to businesses to help you on your way.

"Signs of confidence are beginning to return," says Ally Scott, Managing Director of Barclays Corporate Banking. "Companies across a range of sectors and regions are asking us about increased working capital, or more flexible forms of bank funding, to fund their growth so they can embark on capital expenditure, acquisition activity, or cope with increased business."

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If a business wants to expand and needs equity, banks try to take a proactive role and there are numerous ways they can help support their plans. Expert advice is available to help management teams identify the right type of funding for their business and discuss a range of debt and equity finance options. If none are appropriate they can refer SMEs to other innovative options such as peer-to-peer lending platforms and other alternatives that they may not be aware of. For these reasons, your bank should always be the first port of call if you run a business with ambitions to grow.

If your expansion plan is international then you are not alone. Eric Balish a Trade Finance Director at Barclays, says: "There is unquestionably a thirst to look outwards at new markets and new opportunities, and we’re seeing that across the board. People are looking in particular for markets outside Europe and North America. There are a lot of opportunities that are farther afield, and we are seeing relatively small businesses entering markets such as Africa now regularly."

There is a wealth of dedicated help available for businesses seeking to expand into such markets. The government has established an ambitious target of achieving £1 trillion in exports by 2020 and it is backing businesses who will help make this happen. Through UK Trade & Investment (UKTI), the government offers assistance to ensure success for businesses in international markets. It provides information on major projects and contracts, gives companies access to expert advisers in the UK and overseas, and can put you in touch with business partners to bid for projects and offer lobbying support.

Balish says: "Dialogue with advisers such as UK Trade & Investment is proving to be ever more useful and essential. They have made trade the key concern of consular staff, and businesses going overseas find they get really good access and contacts on the ground. They provide business partners for co-operation and potential customers. UKTI adds spectacularly to the benefit to UK companies visiting new markets."

If you want to fund strategic developments such as site roll-outs, sales and marketing and product development, you will need growth capital - long-term equity funding that can be used to fund such plans. Barburrito, a chain of Mexican restaurants, Boost Juice Bars, an international chain of fruit juice outlets and Peyton and Byrne, a health company, have all received help from the Business Growth Fund – a £2.5 billion UK government-backed initiative set up by the country’s five biggest banks and the British Bankers Association to invest in small and medium-sized businesses. It can help firms that need equity capital rather than debt, but are finding it hard to secure investment from mainstream sources. It offers an initial investment of between £2 million and £10 million for a minority equity stake and a board seat, can provide further funding as a company continues to grow and will never try to take control of a business with which it works. If you have a profitable business with a turnover of between £5 million and £100 million, a management team with a good track record and a proven business model, then the Business Growth Fund could support your business. And even if it can’t invest, it will offer suggestions for alternative options.