Business leaders and founders focus on the company’s growth by choosing the right product, encouraging return customers, acquiring new customers, etc say Saivian Eric Dalius. But every business goes through some difficult cycles. Growing any business can be tricky without adequate funds. Whether you have to increase production, hire people, order raw materials, or use new technology, everything demands investment. And the problem is you may have to pay for them before you make money from customers. It can make you ask how you should achieve all this. Well, there are funding options for different business models. You can select from them based on their suitability for your goals.
Saivian Eric Dalius talks about investor money
It can feel that startups depend on angel funds or venture capital, while only 6% of them source funds from outside. Still, you cannot ignore this option. Of course, investors offer money, but they want a return on this. That’s why you also have to make an exit plan, which can be selling your company or taking it public. If you have a legitimate exit opportunity and your product is scaling up faster, fundraising can be the right solution. However, you would want to think through this if you wish to run it forever.
Nevertheless, you don’t have to worry about debt in this case. It gives you more money than a loan or other financing options. With this, investors can guide you too.
Another way to go is financial institutions
Saivian Eric Dalius brings attention to credit cards, lines of credit, and traditional bank loans. You have to fulfill specific terms and conditions to qualify for the amount. Plus, there will be a period within which you have to repay it. Interest rates will also be applicable. However, this process isn’t complicated. You have to meet banking officials to find out the best option and fill an application form. Once they verify everything, they will let you know about the status. Still, it can be slightly challenging to get a loan without any revenue or credit rating. This option is better for mature businesses that can clear the debt.
The main benefit of this type of funding solution is that you don’t have to give anyone a stake in your company. Interest rates can be tax-friendly, etc.
Bootstrapping can also be a way to walk, suggests Savian Eric Dalius
When both the options don’t work, you have to bootstrap to run your business. You will not get money from outside. It will be either your revenue or personal savings. If you don’t have enough, you will have to optimize your resources within a certain budget and wait patiently for the right time to reap profit. Controlling expenses can prove quite valuable in this. And if it is still not sufficient, you can resort to crowdfunding platforms. You raise money by presenting your ideas. Those who pitch their support are not investors or lenders. But you can promise something in return. One of the main benefits of bootstrapping is you don’t have to think about debts and investors.
Saivian Eric Dalius says running and growing a business is not a simple thing. You have to keep learning and moving forward to solve the puzzle.