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Pandemic, high electricity prices and inflation. Running a business is hard enough as it is, and it has hardly become easier when outside events throw around the conditions. Flexibility has always been important for entrepreneurs but becomes even more important in times like these — especially when it comes to business finances and finance.

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As an entrepreneur, you are often forced to make decisions without having all the information available and it often becomes a measure of trying to predict and plan for what is to come. While it doesn't usually happen as transformative of events as it has in recent years -- especially not with the time interval that it has -- it is more rule than exception that things change. The company grows, unexpected events occur, and opportunities appear.

What was once optimal for your business doesn't have to be one, two or twelve months later. So that you do not get stuck with something that does not fit here and now, we have therefore made it easy to adjust. Has an investment opportunity popped up, has the revenue stream changed or do you need some extra liquidity for a period? At Froda, you can easily log in and adjust your loan to fit the needs of your company today.

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Adjust your repayment rate

Choose between paying back the loan every weekday, once a week or once a month. How often you amortize has no impact on the total cost of the loan, but different repayment rates suit different companies depending on preference and revenue stream. If your company's sales have become more continuous and ongoing, you can change to a higher frequency repayment rate to have less volatility in liquidity. Correspondingly, you can lower the frequency if your company gets paid for its products and services at given times, in order to match the amortization to when there is money in the cash register.

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Make an additional deposit

You can always pay off part of your loan with Froda without any additional costs. You choose the amount you want to repay and the refund is fully automatic by logging in and triggering an additional payment. By making an additional deposit, you can lower the company's current expenses. You also reduce the total cost of your loan as you reduce the loan amount, which leads to a decrease in your interest costs as well.

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Expand your loan

By logging into Froda, you can always see your available loan space and extend your loan whenever you need. The space is updated as the company's turnover allows you to continue investing as the company grows and have an available buffer in case something unexpected happens. Since you are not tied to the amount you applied for, you can also start by borrowing a smaller amount if you want to make an investment, and increase the investment if it falls well, thus keeping the risk down.

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Extend the maturity

Do you want to reduce the size of your refunds or do you need the money a little longer? You can easily log in and extend the term of your loan. In this way, you can both reduce the company's current expenses and have access to finance longer.

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Pause the amortization

Sometimes you may simply need a break. Therefore, you can always pause the amortization of your business loan with Froda. You can pause the amortization whenever you want and as often as you want for up to 6 months. When you pause the amortization, you only pay interest while it is paused, thus freeing up liquidity that can be used for other purposes and reduces the company's expenses for a period.

Most businesses need to inject external capital occasionally. Here are six tips on things to consider before taking out a business loan.

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Purpose of the loan

Only borrow money when there is a clear purpose of the loan and a plan for how the money will be used to grow the business. It can be to finance purchases, invest in property or to hire someone. If you borrow money without a clear purpose, it means that your company incurs unnecessary costs.

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Loan amount and repayment period

How much you borrow and the length of the repayment period you choose will affect the total cost. Borrow only as much money as you need and choose a repayment period that suits you and your business. Shorter repayment terms means that you have to make larger individual repayments, but that the overall cost of the loan will be lower.

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Look at the total cost

It's easy to blindly look at the interest rate comparing business loans, but there are many other aspects that play into the cost of the loan. Invoice fees, setup fees and administrative fees are things that can have a big impact on the total cost. It's also important to check whether the interest rate that's presented is an annual or monthly interest rate. Make sure you know the total cost before you take out the loan so you don't get an unpleasant cost surprise later on.

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What repayment rate is right for your business

There are different ways to pay off a loan, and it's important to look at your business's revenue stream to choose the option that works best. For example, if your business has mainly daily sales through card transactions, amortization in smaller amounts on a daily or weekly basis may be appropriate as it does not affect the liquidity too much. If you are paid by invoice instead, larger monthly repayments may be preferable.

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Possibility of early repayment

Needs can change over time, which is why it is important to ensure the possibility of paying off the loan in advance. With a loan with no commitment period, you can choose to repay the loan early if you no longer need it. This way you can lower the cost of the loan.

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Do your research

Review your options before taking out a business loan. Compare different lenders to see which one can give you the offer that best suits your business. A tip is also to see what other customers think of a lender by reading reviews on Trustpilot, for example.

For small businesses, keeping track of the company's finances is the A and O's. A stable and well-managed economy ensures that the company can meet its financial commitments, that there is capital to invest and that the ability to deal with unforeseen challenges increases. Here are five tips that can help you when it comes to business finances.

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Keep track of all inputs and expenses

A first step to keeping track of your company's finances is to have an understanding of your income and expenses. This means carefully keeping track of all financial transactions, such as sales revenue, costs of goods and services, wages, and other operating expenses. By using digital tools such as an automated accounting system, you can follow these flows more easily and thus quickly identify and correct any discrepancies. These systems sometimes also offer analytical insights that help you identify patterns and potential areas of concern that can negatively affect your cash flow, and thus your company's finances.

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Build a financial buffer

A strong buffer to be able to deal with unforeseen events and is important for both individuals and companies. For smaller businesses, where financial space is usually more limited and where wide variation in the flow of payments is common, it can be the difference between survival and having to shut down operations. A buffer should be large enough to cover your company's operating costs for at least 2-3 months. To build a stable buffer, you can set aside a percentage of your monthly income, cut back on unnecessary expenses, or restructure your existing debts to cut down on monthly expenses.

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Optimize cash flow

Good liquidity and freed up capital will allow your company to make optimal use of its financial resources and you can avoid periods of high financial strain. One way to do that is to try to optimize cash flow and try to get paid by customers as close as possible to the fact that you need to pay your suppliers. By negotiating payment terms with providers, you can synchronize payouts with your incoming payments. You can give customers a discount for early payments to encourage them to pay faster.

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Plan for seasonal variations

Basically all companies have some kind of seasonal variation in their business cycles. Having an understanding and planning for these is essential to have full control over the company's finances. During the off-season, you can review costs, plan for the upcoming high season and make purchases well in advance to get a better price. This way, you can more easily allocate resources during the peak season to ensure that you can meet customer expectations. A flexible budget that can be adjusted to the needs of the season is key to managing these fluctuations and external financing can help your company smooth out the highs and lows to secure a more even liquidity throughout the year.

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Use technical aids

Today, there are a number of technical aids that can make life easier for you as an entrepreneur. It can be anything from automated accounting where all transactions are posted automatically, to tools that facilitate the work with leads, marketing or analytics. In the last year, the development in AI has also progressed rapidly, which has led to increased opportunities for entrepreneurs. Through the integration of AI and machine learning tools, you can more easily forecast your company's finances for the future and get customized recommendations based on your company's unique data.

It is an exciting journey you face as a new business owner and you face a series of challenges and lessons learned. It goes without saying that there will be mistakes along the way, but don't be afraid. Mistakes are part of the process and if you learn from them for the future, they will only lead to development. Because continuous learning, flexibility and willingness to adapt are keys to becoming a better business owner. That being said, it's better to avoid some mistakes right from the start. That's why we've compiled some of the most common mistakes new business owners make and give you advice on how to avoid making them yourself.

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Insufficient market understanding

Having a superstition about how well you know your market is a mistake many new business owners make. An easy way to get around it is to do a proper market research to get a clear picture of the market, your competitors and what needs your customers' have. Do not underestimate the importance of doing solid preparatory work as it will make it easier for you in many strategic choices you will have to make, such as product development and marketing.

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Poor financial tracking

It's a lot to keep track of in the beginning and for many, finances is not something they are familiar with or have done before. After all, the absolute majority of business owners start for reasons other than that they want to dedicate themselves to managing the finances of the business. Many new business owners therefore make the mistake of not getting up to speed with finances right from the start. Failure to fully understand your finances from the start can lead to mistakes in budgeting, poor control over cash flow and a lack of understanding of basic accounting principles. If you instead learn the basics of business administration or hire someone to manage the business's finances, you can protect yourself from future problems and ensure that the business runs as well as possible.

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Not differentiating enough

A common mistake among new business owners is to not differentiate themselves sufficiently from their competitors. In a competitive market, creating a unique value proposition is crucial in order to stand out from the crowd. This can be done by offering a unique product or service, creating a distinctive brand identity or offering outstanding customer service. Not differentiating enough makes it difficult to capture market shares as an established business, but even more so as a new business. Study the offers of your competitors and try to identify niches and needs that are not being met in the market in order to differentiate yourself successfully. By positioning your business in a unique way, you can attract and retain customers who are looking for something that only your business offers.

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‍Not listening to feedback

Feedback, whether it comes from customers, employees or industry peers, is incredibly valuable for business development and improvement. But it can be difficult to embrace criticism, especially if you're passionate about your business and work, and acting on it requires both openness and humility. Many new business owners therefore make the mistake of either not addressing feedback or not actively seeking it, which can lead to missed opportunities to improve your offering, yourself as a business owner or your customers' experience. Embracing feedback and using it constructively can be one of the easiest ways to grow and evolve. By acting on feedback, you can make the necessary adjustments to your business strategy, improve your product or service, and ultimately strengthen your business's reputation and customer loyalty.

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Trying to do everything yourself

A lot of people who become business owners are driven by a desire to do things themselves and in the beginning it can be difficult to let go of things. Many new business owners therefore make the mistake of trying to manage every aspect of the business on their own. This may be due to a desire to save money, a lack of trust in others, or a feeling that no one else can achieve the same standard. But trying to do everything yourself can lead to burnout, reduced productivity and even a deterioration in the quality of work. Learning when you should actually ask for help or bring in expertise is not a sign of weakness, but an essential skill to becoming a successful business owner – and something that can ultimately save you both time and money. This allows you to free up time for yourself so you can focus on the areas that you do best.

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Avoiding administrative work

F-tax, preliminary tax, employer contributions, bookkeeping, VAT reporting, liability insurance, financial year, licenses. The list of concepts that you may need to familiarize yourself with as a business owner can be made long. It's easy to want to avoid for as long as you can, but your journey will be easier if you get a grasp of what you need for your business right from the start. This way you can avoid unnecessary mistakes and missing dates you need to keep track of, as well as spending time correcting things. If you feel that it is too much to get into on your own, you can always seek the help of, for example, an accountant, a bookkeeper or a lawyer.

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In a rapidly changing world, sustainable growth is critical to the long-term viability of your business. Developing an effective growth strategy that lasts in the long run requires ambition as well as strategic planning and implementation. In this article, we will walk you through some of the key components of designing a long-term and sustainable growth strategy for your business. This includes getting an idea of the current situation, setting clear goals, understanding your customers, driving innovation, investing in staff, having a strong financial foundation, effective marketing, and continuously evaluating and adjusting your strategy.

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Keep track of the current situation

Before you start planning for the future, you need to make sure that you are aware of the current situation. Every successful growth strategy therefore begins with a thorough analysis of your company's current situation and current position. Perform a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats. Analyze trends, your competitors, your customer base, and your internal resources to understand how your business differs from the competition, be able to identify potential opportunities and possible future risks. This way you can identify the most profitable growth opportunities and avoid potential pitfalls.

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Set clear goals

The next step is to define goals for the company and growth. This is conveniently done through the SMART model where the objectives should be specific, measurable, achievable, relevant and time-bound. The goals you set can range from increasing sales or customer growth, to gaining market share, geographic expansion or launching new products. Your goals should be aligned with the overall vision and ambitions of the company. The objectives shall aim at providing a clear direction for the company's development while being flexible enough to adapt to changing market conditions.

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Focus on your customers

Understanding your customers and responding to their needs is central to long-term successful entrepreneurship. Collecting customer feedback on a regular basis and conducting market research to understand their preferences, behaviors and problems is therefore an obvious part of any growth strategy. As you gain a better understanding of your customers, you can customize your products and services based on insights and thus better position yourself for higher customer satisfaction and loyalty. This can be about tailoring your offerings, improving customer service, or developing new solutions that meet customers' specific needs.

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Embracing development

History is littered with companies that once stood at the top of their category before being reinvented for not keeping up with development. You are never better than your last performance is a common expression that resonates very much with life as an entrepreneur. In order for your business to stay relevant, it needs to keep up with developments and the easiest way to do that is to encourage a culture of innovation at your company. Then you can lay the foundation for openness to new ideas, techniques and business models. It also makes it easier to adapt quickly to market changes and customer behaviour, which is key to sustainable growth. Your growth strategy can therefore usefully include investing in development, encouraging creative thinking among employees, and monitoring technological advances and industry trends.

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Invest in your employees

If you have employees in your company, it is the company's most important asset and ensuring that they are both satisfied and that they develop is essential for the company to grow. Your growth strategy should therefore include investment in their training and development as well as offering career opportunities and benefits that encourage long-term commitment and loyalty. Partly to promote innovation and development in the company, and to create an environment that encourages engagement, collaboration, and increases the satisfaction and motivation of your employees. Strong teams contribute to the company's culture and brand, which in turn both attracts talent and improves the relationship with customers.

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Plan the economy

Economics is a central part of entrepreneurship and its role in a growth strategy is no exception. A solid financial plan is fundamental to managing growth because it doesn't matter how good ideas you have if you don't have the finances to handle them. It is therefore important to include budgeting, cash flow forecasting and strategic allocation of financial resources in your growth strategy. Be realistic in your financial expectations, prepare for different financial outcomes, and ensure that there is enough financial wiggle room to deal with unexpected challenges or that you have the ability to jump on investment opportunities if they arise.

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Set a strategy for your brand

If finances are central to managing growth, your brand development is central to getting rid of it in the first place. In marketing, the work on the long and short term is usually divided, where the long-term efforts are focused on building and strengthening the brand. A strong brand is critical to differentiating itself from the competition and building a loyal customer base. Therefore, include a plan for how your marketing will communicate your brand's values and benefits long-term in your growth strategy. Your brand is an intangible asset and strengthening it not only strengthens your company's valuation, it also gives you the opportunity to increase the premium on your goods or services.

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Analyze and follow up

Predicting the future is almost impossible, so be prepared for the fact that you will have to revise your growth strategy. Analyze and continuously monitor customer feedback, marketing and the outside world to be able to make adjustments to your strategy. Flexibility and the ability to quickly adjust plans are essential for you to succeed in your growth and achieve long-term success. By measuring progress towards your goals and being open to change, you ensure that you can maintain your relevance and competitiveness to succeed in your growth journey.

The reasons why you as an entrepreneur may need external financing are many. Possibly you have a chance at a bigger venue that would increase your turnover. Would you be able to serve more guests with a larger outdoor seating area or would you like to buy a large warehouse for Christmas shopping? Borrowing can be a wise business decision. Here are some good questions to ask yourself before you decide.

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How do I use a loan best?

Mest du, som en, du. Possibly one more barber chair would mean a lot to your profitability? Or would your efficiency increase with a new restaurant oven? Most importantly, the loan is used in a well-thought-out way, opens up new sales opportunities and that you have thought through the risks before borrowing. Just borrow for exactly what you need. Don't worry about solving an acute crisis.

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Will the loan pay off?

A profitable loan provides leverage through increased sales. The only way to find out is to count on possible additional sales and costs. How many more lunches do I have to sell for the new outdoor dining to pay off? How much extra sales does the new website have to generate?

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What is it going to cost?

The cost of the loan will vary depending on the solution you choose. Be sure to include all the fees of the loan. Para loanên bankê, ev dikare, ji bo nimûne, rêveçûnê, lêçûnên sazkirinê û feyên têketinê. Also, the time that you spend on writing loan application, business plan and administration is an expense.

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Will I be able to pay it back?

Never take out a loan without doing a thorough analysis so that you feel confident that you can pay it back. Calculate what the refund means for your cash flow. Also consider what it means if the investment does not produce the expected effect.