Finding funding for business growth
Many business owners find funding to grow their businesses an arduous process. Then some never get anywhere because they don’t even know where to start. This article provides you with some steps towards securing financing for your company by utilising the services of a business coach.
A good starting point is to understand why funding is required and how it relates to or resembles its future vision and long-term goals. Next is to know how much money you will need and what finance option or investment opportunities would be best for you. When you clearly understand how much you need and why it’s vital for business growth, you can search for financial institutions that offer these services. Many different types of loans are available today, from traditional bank lending to alternative sources like micro-lending organisations (MLOs) and private equity firms. Each has its pros and cons, so make sure you research before deciding which one might work best for you.
To obtain the funding, the prospective lenders may need for you to respond to questions like the following:
· Do you require finance for more than R500 000?
· Has your business been in existence for more than two years?
· Do you have your business’s annual financial statements?
· Do you have your business’s cash flow forecast for the next 12 months?
· Do you have your balance sheet?
· Do you have a business plan?
Hopefully, the picture is starting to get clearer, and you realise that a lot of hard work and thinking is required before you can apply for growth funding.