Finding the capital you need to develop your small business

When you're at the very beginning of the process, developing a small business is relatively easy. As long as you already have an idea for a product to sell, all you have to do is make it and sell it. It's a straightforward process when you think about it. The more difficult part, however, is scaling up.

What happens when you feel the desire to build a bigger business? Here's what: You realise that you need more employees, more materials and maybe even a bigger facility. For all of the above elements, you need funding.

Getting the cash you need to develop your business can be challenging, but there are a couple of strategies that are proven to work.

How can you get your hands on cash?

If you really want to get to work on business development, scaling up your operations and reaching the next level, you'll need to get some money from outside sources. According to the Queensland Government business and industry portal, there are two basic strategies that are effective for doing this – equity finance and debt finance.

The distinction is fairly simple. With equity finance, you're selling a chunk of equity in your firm – for example, the funding party might get a few shares of stock or a percentage of the company's ownership. With debt finance, you're essentially borrowing money and promising to pay it back later. Both approaches can be effective, depending on your company's needs.

Making smart investments in your future

As you start to take new sources of funding and allocate them to improving your business, it's important not to get carried away. You don't want your new resources to span too many different targets – instead, Entrepreneur Magazine recommends focusing on your core strengths and putting the lion's share of your resources towards improving those.

Focus on what your company does best and maximise your output.

It's also important to pay attention to cash flow and understand the ways in which it might change, either on a seasonal basis or otherwise. For help with this, you can always reach out to capable chartered accountants.

Get valuable assistance with strategic planning

If at any time, you're hesitant or confused when it comes to planning for future growth, you should probably consider working with a business development consultant who can clear up whatever issues you face. At Wilson Porter, fortunately, we have a team of development experts in place.

Our experts pledge to learn everything they can about your business – who you are, where you're going, how you plan to get there and more. Once we know all of that, we can help at every step of the way. Call us today to begin that journey.