The expansion of your business is attainable. The question is, how should you go about expanding? Not only does growth allow for higher profits, but it also allows for oilfield service companies to help meet consumer needs. Although growth does come naturally for well-run businesses, there are specific steps that you can take to help speed-up the ability to expand your business.
If you are at a point where you would like to see higher growth rates for your oilfield service company, you have come to the right place. Here are Scale Funding’s tips on how to help your company achieve its goals.
Using factoring is one of the best ways to use your capital most effectively. Rather than waiting 30, 60, or even 90+ days to get paid for your services, factoring companies will buy your invoices and advance you the money you need to pay expenses, meet payroll, and expand. If, for instance, you provide a service to client A worth $500,000 and you factor that invoice for an 80% advance, you will receive $400,000 of that day-of. The factoring company, once they are paid for the invoice, will then take a small fee and return the remainder to you.
Oilfield operations are capital intensive. You require plenty of working capital to sustain daily operations, invest in modern equipment, meet consumer needs and expand your business. Factoring is a reliable way to ensure that you have the money that you have earned when you need it.
One of the best ways to expand is by listening to your clients! By encouraging consumers to provide feedback, your company can identify potential areas of growth and develop new services to meet those needs. In doing this, companies will see better client loyalty as well as higher profits since you will be reaching into new market segments by offering a variety of services. Clients who are happy are also more likely to refer potential clients to your oilfield company.
Business growth isn’t all about hiring extra staff and setting up new offices – it is about investing in human and physical capital that will help in the expansion of your company and increase profit. This means that for oil companies undergoing expansion, it is imperative that one invests in new machinery. However, it is no secret that new oilfield machinery is expensive.
Leasing equipment rather than purchasing helps oilfield service companies enhance their operations without taking huge chunks of capital. This is an excellent option for companies that are currently undergoing growth because it allows for more capital to allocate elsewhere.
Reinvesting profits allows for oilfield companies to make money off of their reserve capital. Depending on the nature of your specific business, this may mean investing in physical capital or potentially in financial assets. If reinvestment is something that interests you, make sure you consult a certified business coach before making any major investments. By making investments, you are setting yourself up for future success.
Expanding your oilfield company is an attainable goal. Don’t let a lack of capital flow stop you from diversifying services or investing in your company. Scale Funding offers reliable factoring services to ensure that you have the working capital that you need to accomplish your expansion goals or simply meet day-to-day needs.
If your company is being held back by slow cash flow, or if you need money to meet those daily expenses, call Scale Funding at (800) 707-4845, or contact us via the web for a free, no-obligation factoring consultation and quote.