Management of Financial Woes
Question: How do I reduce my financial woes and still grow my business
- Remember the guiding credo of small business, “happiness is positive cash flow.” Know what is owed to you and when you can expect to receive payment. That way you can determine how much cash you can devote to expansion vs. day-to-day business
- Make sure you have a strong customer base in your existing business before trying to expand and grow. The one will give you a greater negotiating position especially if you are trying to expand your business nationally through retail
- Use your peers as advisors – seek out networking opportunities to test your ideas and approaches for growth. Other business owners have similar issues and are normally welcoming when finding people like yourself with whom to network and get ideas of their own
- Using investors is only one way to finance growth. The first option should be to reinvest profit from the business to help grow your enterprise. That way you retain as much ownership as possible.
- If you chose the investor route, get an experienced negotiator to help you structure a deal that won’t leave you doing all the work and getting none of the rewards. You may know your business, but financing a business through private investors is a slippery slope and one you may need help in navigating.
- Look for investors who will provide more than money. Sometimes having investors who can invest their experience in your type of business to help you
- Create a board of advisors who can guide you through the growth curve.
Associates who have varied experience, interested in donating their time to assist you is sometimes more valuable than investing dollars.
- Many “boomers” are considering becoming entrepreneurs in their post-retirement years. Beware of franchise or business opportunities that are suggesting to invest your retirement savings in a venture. It is all RISK, no matter how well you have planned your
Source: USA Today Money 9/23 Laura Petrecca Smart Small Business
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