5 Ways to Expand Your Business Without Jeopardising Your Personal Finances
If you have a business, sometimes you’re forced to choose between doing what’s best for your company and doing what’s best for your personal finances. This is particularly the case when it comes to expansion; you know that if you want your company to reach the next level that you need to have an investment of cash. You also know, however, that money is difficult to come by, and the best resource you have is probably the savings you have in the bank. But what if there was another way? Well, there is, as it turns out. There are a number of different ways. We take a look at a few below, so you can keep your savings intact and grow your business.
Have a Solid Understanding
First thing’s first: you need to have a solid understanding of what you’re trying to achieve with your expansion. The biggest risk you’ll take, whether it’s your personal money or otherwise, is planning an expansion without really thinking about the end game. Your personal finances will undoubtedly take a hit if your company folds, so you don’t bite off more than you can chew.
If your company is popular enough, then you might be able to fund your growth through your clients. Of course, they won’t just give you their money; you’ll have to give them something in return, but this is more than manageable. If you use crowdfunding websites, you’ll be able to offer them things like gifts, special access, and memberships that offer discounts as an incentive to fund your growth.
Your Existing Assets
It’s also possible that you already have all the money you need to fund your growth; it’s just stuck inside your existing assets. If you have expensive equipment, then you may be able to take advantage of asset-based lending programs. You can get more information from Equify here, but in short, this type of lending allows you to release some of the money that’s tied up in the things that you already own. They’re worth a lot of money, but are useless when it comes to growth because it’s not cash; with this, you can keep your machinery and fund your growth at the same time.
If you need a sizeable injection of cash that no other source can offer, you might want to look at bringing on board outside investors. These investors will get a percentage of your company in return for a cash injection. There are pros and cons to this, of course, the biggest con being that you’ll lose some control of your company.
Cutting Your Costs
If you’re determined to keep control but have no other means to fund your growth, why not see if you can bring in some cash just by tightening your belts? You may be able to cut back on costs to raise some money temporarily. Once the money has been raised, you’ll be able to divert the funds back to wherever they were cut.