In business you have two choices: maintain the status quo or take a risk and grow. For the more entrepreneurial-minded, there is no choice: if you don’t adapt and expand, you die. Expansion requires all cogs in the business wheel working together: staff, management, customers and finances should all be moving in an upward spiral towards a bigger and better form of success.
It is not as easy as it sounds and financing can be a real problem, if you don’t know where to look. So here are five smart ways to fund your business expansion.
Invoice finance is a growing movement and can really help ease the pain for small businesses that need time to work on the business but not stress on the financials. Through this process, a service provider such as Timelio will advance you the money on invoices that have been billed out, rather than you having to wait 30 to 120 days to receive payment for your invoice. By closing this pay gap, companies have immediate access to money owing to them, improving cashflow.
Online lending services have become a popular alternative to traditional business loans and have the advantage of speed with some providers processing applications within an hour. In the US it is expected that online lenders will eventually reach more than 70 per cent of small businesses.
Friends and family
Don’t be afraid or embarrassed to ask your friends and family for a loan. Not only are they usually all too willing to help (because they want to see you succeed), the interest they charge will be minimal or nothing at all. There are no bank contracts either and as long as you keep communication lines open, everyone remains happy.
Sometimes you have to give something up to get something back. If you have assets in the business that are gathering dust, sell them and raise some cash. You could also look at selling personal items such as a car or other high value assets.
It is easier said than done, but angel investors not only provide capital, but also a tonne of expertise. Angel investors have helped to start up many prominent companies, including Google, Yahoo and Costco. Angel investors provide a less intense environment than regular investors and can make decisions much more quickly.
There are a myriad of ways to raise capital. Other methods include crowdfunding, venture capital, home equity and government grants. When considering what path to take, be smart about it and take the path that will cost you the least in time and money. Do your research and you will find that growth comes easier than expected.
If you think Timelio is just what you need to grow, contact us or call us on 1300 FUND ME.