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.
Business coaches can help to develop a business plan
While it may be tempting to rush into getting a loan from a bank or financial institution, you should spend time developing a strong business plan first. Business coaches can help you develop this because they understand what is required for the most common types of businesses out there (e.g., service-based businesses). This means that when you come up with the numbers and figures needed for your business plan, then it will be easier for banks or private investors to feel confident about providing you with funding because they know that these numbers are solid and realistic (i.e., not wishful thinking). In addition, once you have created a strong business plan with help from a coach, then financing may be much more accessible to you.
Business coaches may even be able to get you in contact with companies or individuals who provide funding.
Business coaches also act as a thinking partner – helping you think through problems and issues to make better decisions. They do this by asking questions such as: “What is going on here?”; “Why does this matter?”; “How might we solve this problem?”. Business coaches also play the role of an accountability partner, ensuring that your actions are aligned with what you want to achieve.
Business coaches help you develop your business strategy based on your vision and values. They also help you to clarify what success looks like for you. Once you have a clear idea of what success means for you, it is much easier to concentrate on the activities that will get you there. In this way, business coaching is an investment in both time and money – but one that pays off over time as you start seeing results from the work we do together. Business coaching can be done in person, online or via telephone.
In conclusion, growing your business can be challenging and time-consuming. However, with a coach’s help and guidance, the process of finding funding for your business may be much easier and more successful.
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For more information on business coaching visit our dedicated business coaching website.
Till next time – Daniel