When I started my first business many years ago, I thought once I got past my startup phase—when I started to break even and even to turn a profit—I’d be finished with raising and borrowing Money. Boy, was I wrong. As it turns out, I’ve needed to Raise Money more times than I can count for all of my businesses.
But how do you know when your business needs an influx of cash? I’m not talking about an instance where a poorly-run company is in dire straits and needs money to cover the bills. That’s an unhealthy company; while cash may forestall closing up shop, the root of the problem lies elsewhere.
I’m talking about healthy companies, ones that are being run profitably. How can you tell when you need to raise money? I think it’s when you’ve stopped growing.
Raise Money to Achieve Growth
Growth matters. It’s about more than just increasing your revenue; growth can be what keeps you from resting on your laurels, from becoming complacent. Growth is what challenges you and encourages you to keep Offering Exceptional Experiences for your clients.
But growth doesn’t happen on its own. You have to seek it out!
So when you discover that your business is no longer growing, you may want to consider raising some money to fund an expansion. This can help you jump start a new phase of growth for your company!
Growth is what challenges you and encourages you to keep offering exceptional experiences for your clients.
You may choose to expand in a number of ways. You might decide to change up your physical space, either by moving into a new building or by deciding to renovate your existing space for a fresh feel. Yes, physical changes can be disruptive, but they can also help remove impediments that have prevented you from growing. Whether you need more space to accommodate new business or you need to rework your existing layout to improve efficiency, you’re probably going to need funds to achieve your goals.
Maybe you think your company is a little dated. But sprucing up your brand and your marketing might require professional assistance. And how do you pay for a new ad campaign that can help bring new customers to your company? You may need to raise money.
Whether you want to go after some hotshot new employees or finally get to work on a crazy brilliant idea you’ve been dying to implement, having money can help you make the decisive decisions necessary to your growth.
Finding the Funds for Your Expansion
So what are your options for funding?
My favorite source of all (but one that can, admittedly, be hard to locate) is the angel investor. I’ve had mentors who believed in me and my vision who were happy to help me achieve my goals. Family members and friends are great opportunities, as are members of your community who may benefit from your company’s ability to expand.
There are also the old-fashioned ways of getting cash—everything from traditional loans to lines of credit to a wealth of alternative lenders that offer businesses of all sizes resources. You can shop around for best terms to help you reach your growth goals!
Crowdfunding has been a game changer in the fundraising scene. It democratizes revenue in a way that can be both appealing and practical.
An obvious candidate for crowdfunding are companies that produce things. Want to manufacture something you’ve been dreaming about? You can put it up on Kickstarter! And if you think crowdfunding isn’t an ideal method for your business, you may want to reconsider: Even service-based companies can make a go of it on sites like Indiegogo.
Crowdfunding can be a slow process, which means it’s not an ideal source for a quick cash infusion. But it can be a powerful engine that can help you grow if you use it correctly. A persuasive pitch is important to a campaign success, so consider enlisting the help of a professional when you’re writing your copy and creating your video. And offering rewards with special VIP packages for your services or cool merchandise with your new logo can help attract supporters.
Remember: If your company is stagnant, that can be a sign that you’re ready to expand and recapture some of the enthusiasm and creativity that growth can yield.Try raising money to help your business reach the next level.
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