Entrepreneurs do not rest on their laurels. They are a restless spirit, driven by a desire to succeed, striving to be the best at what they do. Innovation and creativity combined with a health focus on not falling in to a rut, they are the engine room of the economy.
Driving forward their business is relentless, so much so that it sometimes becomes difficult to see the wider picture. If this occurs, and it does from time to time, there are strategies which business owners can implement to jumpstart a business and keep it on track moving forward.
Start up funding
If you have a great business idea but do not have all the necessary capital to get it off the ground why not run the idea past relatives? It is not unheard of for a new business owner to present a business idea to a trusted relative and negotiate a loan to start up, a loan which will be repaid with interest. In fact, being known to family is a great advantage as you already have their trust. If you can ask them to loan a percentage of your input value, you will not be tied to a bank and all the issues that can entail.
Focus on keeping credit lines to a minimum
Don’t get lost in the minutiae of day to day business operation, but remember the details. Look at ways in which your business can cut costs without cutting down on service to clients. Negotiate, if you can, discounts for immediate payment for supplies or inventory.
If you have a rapid turnover of inventory and customers pay in cash, such as in retail, construction and automotive repair for example, your cash flow figures will look great. If you focus on paying your way without day to day borrowing and build a healthy bank balance, it will bode well in the future. If and when expansion of the business is required, sourcing loans with favourable interest rates will be so much easier if you want to go down that route.
Funding tailored to your business
Look at ways to fund your business which do not put a strain on the finances. There are companies in the US such as Become.co which deploy technology to source business finance which is right for your business and your circumstances. Companies such as this are able to unlock funding from sources which most owners of small business do not have access to. If you’re looking to expand the business, introduce automation in the business or any other improvement, specialised tailored funding is an excellent route to follow.
Look for investors
Growing a business, expanding in to new markets and increasing revenue streams may well attract the attention of investors. Companies, associations and individuals with money to invest are always looking for opportunity to grow their wealth. This is a tried and trusted method of injecting capital in to a business but it may be fraught with difficulty.
Remember, investment may be good for some but, ultimately, the business owner who accepts the investment will also have to accept some loss of control of the business. Knowing the entrepreneurial spirit, this is not something most will take lightly and is often used as a last resort.
