Source: smbceo.com
Growing your business without financing can be extremely hard. There are of course numerous stories of entrepreneurs who have built a business from nothing, but there are plenty of others who have secured financing to drive their businesses forward. Quite often it is in the early stages of a venture that investment can be the difference between success and failure. Finding sources of finance doesn’t need to be as difficult as you might think if you follow the right steps.
Get organised
Writing a detailed business plan can seem time consuming when you feel like there are more pressing issues in your company needing your attention on a day to day basis. However, having a plan for where your business is going will prove extremely valuable when it comes to raising finance and helping you set goals for growth.
It is very rare that a potential investor will take you seriously without a detailed plan that addresses where you aim your business to be in the future, how much financing you will need to get there, and how you will get past any possible problems now and months and years ahead.
A detailed business plan helps you evaluate whether your growth plans are realistic, as well as how much financing you need. It reassures anyone that might possibly lend you money that your business is a safe investment. Not only this, but it also stops you making mistakes by investing your time, effort and money into something that might not work.
Raise enough finance
There is no point securing finance for your business if it isn’t enough to grow the business comfortably. You don’t want to get half way towards your goal and then run out of money, you need to raise enough finance to give you the best possible chance of succeeding.
There are nearly always more costs than you might think, so plan for the unexpected in your forecasts. If your forecast predicts you need a certain amount of capital, increase that again. Remember that you need to keep your business going until it breaks even. You will generally find that you always have too little money, rarely too much.
