Your business could always use more money. Karen Stern, partner in charge of BSW Small Business Services, shares how the appropriate financial reinforcements can give your company a competitive edge, in this month’s “Financial Fitness” column, as featured in Small Business Monthly.
Whether you have been in business one week or five years, an infusion of funds is always welcome. It’s important to understand what type of financial reinforcement you need now, and in the future, so you can follow the proper path for raising funds. Securing the best options with the most favorable terms depends heavily on how well you evaluate your money management needs before they arise.
- If you currently need funds to expand your business, cushion against risk or to stay competitive, approaching your solution strategically is your best line of attack.
- Are there ways you can manage your cash and resources more effectively right now? Find ways to optimize your assets, such as accounts receivable collections and inventory management.
- Do you have an up-to-date, written business plan? Evaluate your progress and update your plan in order to identify opportunities that come with each issue you face.
- Have you thoroughly evaluated your business risk? If you can find ways to reduce that risk, it will decrease the cost and increase the financing options available to you.
As your business grows, you will require additional expertise. Rather than take on full-time staff, it makes practical and financial sense to outsource.
- Re-evaluate your needs, such as accounting and reporting.
- Reassess arrangements for these tasks accordingly.
- Work with experts who specialize in your industry.
Your business is not just about what you have accomplished. Discovering and strategizing opportunities learned in the midst of growing pains is crucial to a thriving business.