Growth should always be your end goal in business. Unfortunately, in some instances, you may find that your vision, or even your company needs, outstrip what your profits can realistically afford. You might have a great new vision for your business products, for instance, or may have a growing team that no longer fits your current premises. If you do nothing, your company could start stangating. But, plunging ahead when you can’t afford to could see you plummeting into the red and struggling to get out again.
So, something has to give, and that something is typically the method through which you finance your company. Of course, you shouldn’t finance outside of things like profit projections. But, you could give yourself a company boost by turning to the following financing streams before you can afford things upfront.
# 1 – Source Growth Through Loans
The vast majority of businesses turn to company loans at some stage. This is a standard part of starting a company, and may even be an option you’ve used. But, loans aren’t simply for startups. They can also be a great option for bridging company growth.
The most obvious example of this can be seen from options like bridging loans, which can help you to afford a larger business premises upfront. This can boost productivity, and make it possible to expand employment efforts that ultimately pay for your loan and bring profits. Equally, you could expand your product development efforts using standard term loans which provide you with cash lump sums you can repay over time. In either instance, your company can grow, and your profits can shortly follow.
# 2 – Seek Private Investment
Securing a private investor for a business with no proven track record can be impossible. Now that your business is established and set to grow, it should be far easier to seek investment of this nature.
Admittedly, most investors will require some percentage of your company for a set time, so this isn’t always ideal. However, if you think you could benefit from the expertise of a certain investor or are willing to work with a silent partner for ongoing financial support, then this could be an invaluable way to secure not just money right now, but also moving forward.
# 3 – Diversify Your Income Stream
If your business profits aren’t keeping up with growth, it also makes sense to diversify your income stream. This way, you’ll have a far larger financial pot to draw from for business-specific projects like premises expansions.
Developing your investment portfolio is perhaps the most obvious example of this, though it isn’t without risks. Instead, many business owners may prefer diversifications that include expansions into new marketplaces (e.g. selling online) or even affiliate arrangements. By spending on these initiatives upfront, you can enhance profits over time, and thus afford the growth you need to take your company even further without a third party.
Growth matters. Make it possible regardless of profits using these financing options.