Growing a business of any kind takes money, and more often than not, a hefty amount of it. Whether expanding into new markets, increasing your product range, opening additional outlets or otherwise, successful growth is never likely to come cheap, and though securing a bank loan is the most practical way to achieve it for many, others see debt-led financing as counterproductive and an unnecessary financial strain.
With that in mind, here are 4 alternative methods of securing funds to facilitate growth, without having to meet with your bank manager.
Very much the buzzword of the business world right now, crowdfunding sees you appeal to members of the public to pledge money to help you meet your goals. In return, you will normally be expected to offer perks, such as free samples, early access, exclusive goods, and suchlike. Crowdfunding is a great way to not only draw in finance, but also to gauge public interest in your products or services, with a successful campaign a clear indication that you’re offering something that people truly want.
2. Angel investors
Angel investors are business specialists who help fund small or up-and-coming entrepreneurs, usually in exchange for an equity stake in their company. They are often particularly drawn to investment opportunities that are deemed higher risk, and thus more likely to have been turned away by mainstream banks.
3. Selling surplus stock
Through the likes of BPI Auctions, you can easily organise the selling on of unneeded assets and surplus stock, serving as an additional income stream and freeing up vital space for new staff, equipment and goods that will surely prove very handy later down the line once growth in underway.
If you can afford it, putting your own money into your business could be the perfect solution. You don’t need to worry about third party lenders breathing down your neck or mounting interest payments, and will simply be recompensed naturally as your company thrives and expands.