The 6 best ways to finance your company and ensure its continuity | leadership

The 6 best ways to finance your company and ensure its continuity | leadership
The 6 best ways to finance your company and ensure its continuity | leadership
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When talking about the survival and growth of the company, money is the first factor to ensure its continuity, and here comes the search for sources of funding for the company. The major problem here is that obtaining appropriate financing is not an easy process, especially for owners of small and medium enterprises, and despite the multiplicity and diversity of financing sources, the financing risk always stands in the way of taking this risk, but such a risk should not hinder you from developing your project.

In an article published by the American “Inc” magazine, writer Joe Procopio presented his experience in financing many small and medium-sized companies.

The writer indicated that he always prefers to follow the self-financing plan, never resort to borrowing from friends or banks, and never use credit cards to purchase anything that he cannot pay at the end of the month, thus not exposing anyone other than himself to danger.

The writer stressed that distractions must be eliminated, because in the end, the success of the startup depends on the brilliance of the idea and the excellence of the execution, not on the amount of money you can spend on it.

The success of a startup depends on the brilliance of the idea and excellence of execution, not on the amount of money you can spend on it (Shutterstock)

Do not invest more than you can afford to lose

The writer believes that starting a business has become easier and cheaper than ever before, even if it is a high-tech and high-growth startup, but this does not mean that it will be free, but rather your financial conditions and business plan will determine whether it is within your reach.

And when it comes to determining the amount that you will invest in the end, it is like entering a casino and betting all this money, then losing it in the end, and you have to imagine this scenario so that you can develop a plan in case you fall into such a situation.

Develop a financing strategy

The writer believes that you should invest in your project in stages. Although a $1,000 investment won’t get you $1,000,000 in annual revenue, it could get you $10,000 in annual returns. Once you reach that goal, you’ll need to figure out how much you’re spending on labor and cost of goods sold, and then figure out how to make up the difference.

And if you have $1,000 or $10,000 to invest in your project, you should invest part of it now, a larger part in a few months, and then the largest part in a few more months. At the end of those months the losing period stops, and if you haven’t found a catalyst by then, you should either quit or take care of something else, but give yourself a chance throughout this period to find out.

Learn how to get things done

The writer stated that he does not use anyone else to accomplish some tasks, such as marketing, sales, accounting, or human resources, knowing that he has learned enough in each field so that he does not need to spend thousands of dollars on experts who do these things for him.

And although he kind of hated those tasks, he actually learned to love sales and marketing, even if it took him decades, because he believes if you’re going to start running a business, you need to know the basics of everything.

Before you spend money on any job try to do it manually or for free.
Before you spend money on any job, try to do it yourself or for free (Shutterstock)

In the same context, the well-known American website “Forbes” concerned with financial and investment affairs published an article on a group of experts, in which they explained the most important steps of financing startups, and it was stated that among the steps for successful financing are the following:

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Find alternatives to costly jobs

Experts emphasized that it is not necessary for every business to get the jobs of high-priced organizations, or a professional pay-per-job. Before you spend money on any function your business needs, whether it is technology, finance, marketing or anything else, try to do it yourself or for free.

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Experts advise adopting shortcuts wherever possible, making sure you take shortcuts that matter to the customer, and also make sure you have a “right” plan, and only spend on things that generate income.

Find successful people and make deals with them

People will want to help you if you have a great idea that you are passionate about, and you can confirm that you can implement it, but do not forget that most of them will want to help because they see an opportunity in their favor, with a few exceptions. So you have to be upfront about it and confront them, and if the opportunity is profitable for them, you can strike a deal, and here’s how.

Practical help: If you can demonstrate the potential value of ownership in the form of stock options, talented people may work with you for little or no salary (for a while, not forever).

Seller Resources: If you can prove that you will be a valuable and loyal customer in the future, perhaps you can get a discount or barter deal on the resources you need to develop into that customer.

Partnerships: If you can barter one group of services for other services, those partnerships that offer what you don’t offer may help you get projects that fall within your services, not theirs.

Clients: If you provide your initial potential customers with services that are a little better than what they pay you for, you may be able to build an initial customer base that can play a role in recruiting other customers.

Experts always advise making revenue a top priority
Experts always advise making revenue a top priority (Getty Images)

Revenue is a top priority

And nothing should be done that is not a tactical task in the strategic roadmap for sustainability. There will be plenty of temptation to skip, avoid or deviate from this roadmap, from enticing new opportunities to desperate moves in tough times.

Therefore, the writer advises to always make revenue a top priority, because you will not be able to aspire to the best if you do not find yourself in a financial position that allows you to act in accordance with those goals. Finally, you should keep track of everything you do and always analyze all your data to determine your return on spend.

Not only will this help you find your own growth path, but it will also prepare you to be able to generate a return on any outside investment you may make in the future.

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