Growing a business doesn’t just take a lot of time and energy. It also takes financial investment. You might be ready to take your company to the next level. Perhaps you can produce more goods if you buy a new machine? Or maybe you know that manufacturing the materials you use in your company could give you a competitive edge? You’ve got a good business head on your shoulders, and your strategy is well defined. All you need to do now is solve the problem of financing:
Sit And Wait And Save
You might choose to generate the cash you need through the sales you’re already making. This could delay your plan to grow by a few years. It can feel quite satisfying to know you won’t be accumulating any debts though. Of course, it can also be quite annoying earning so little for so long when an opportunity to expand is right there in front of you. It might be worth putting together a fresh SWOT analysis. Would holding back on this purchase now put you at risk?
Business lenders tend to look favourably on loans for new equipment, especially when you have a good history of orders behind you. An unsecured loan is just one option to find the investment you need at the time you need it. Websites like unsecuredfinanceaustralia.com.au/ detail how to manage the application process for this type of loan. The amount of time it takes to receive the cash can vary so check with your preferred lender before you put down any deposits!
Some clever accounting might help you to release the funds you need from other areas. If you’ve been trading for a while, you have probably been putting your profits aside for projects just like this one. It’s important to weigh up the pros and cons of pulling funding from one project to this new one. How quickly will you see a return on that investment? Have a look at websites like https://www.easycalculation.com/mortgage/roi-calculator.php to figure out the figures. How quickly can you replenish the savings pot so you can restart the original project? Don’t be tempted to borrow from your taxes and insurances pot, though.
Another Revenue Stream
If it’s taking too long to save and other funds aren’t available you might need to try something a little different. A second revenue stream could bring in additional funds more quickly so you can save up what you need to invest. You might be able to apply your expertise to an online business venture. Or perhaps you can place your products in a new marketplace? Finding that extra source of income could quickly become a full-time distraction for you, though.
Find An Investor
Rather than borrowing or saving, you might propose a business opportunity to an investor. In exchange for shares in your business, they will put up a sum of cash to support your growth. Be wary, though. You might get on with this investor, but they probably have to right to sell their shares on to another third party. You might lose control of your own business. What’s your preferred approach to funding business growth?