In business, financing is crucial.
Some require more money. Others require you invest more time.
And time is what most businesses start with. However, it’s not sustainable long-term, especially as you grow.
So you need funds.
Below, we’ll mention 4 ways that funding is necessary. And specifically, we’ll discuss them in the context of “expansions.”
As your business grows, you must outsource some tasks.
You’ll hire employees for that. They’ll take care of micro-tasks, while you dealwith “the bigger picture.”
Now, how many you hire depends on your business model.
The less you automate, the more employees you need. Also, the more offline (and physical) your business is, the more you hire.
Speaking of Automation…
That costs money too.
You’re buying machinery, software, apps, you name it. And while those replace employees, your machines require maintenance.
This leads us to our next point…
As you expand, you get more infrastructure.
This could be a new store opening/equipment. Or, it could be extra warehousing space for your supplies.
The expansions won’t come out of pocket. You’ll need to borrow for them, and in the range 5-6 digits.
Fixes & Emergencies.
Usually, insurance can bail you for that. But you need to pay that insurance.
It’s how you maintain your infrastructure. You protect your assets from accidents, a fire, or employee harm.
Speaking of employee harm – what you pay them isn’t limited to paychecks.
You’re paying them benefits. Those cost as much (if not more) than the salaries themselves. And it’s how you incentivize them to work.
Applies to both online and offline business.
You might be remodeling a website. Or, you might be remodeling a restaurant.
Whatever you remodel costs large sums of money. After all, you hire experts to do the work.
You hire interior decorators, web programmers, buy the items, etc.
The more you grow, the more you market yourself.
It’s how you stay dominant in your niche. You must be more visible than other businesses…
In fact, it’s the first step towards an expansion. Because your expansion needs to be communicated to others.
Otherwise, it’s useless.
How Much for Advertising?
Many large companies dedicate 33-50% of their budgets to marketing.
And rightfully so. Because when expanding, you don’t just seek new clients. You also seek to keep old ones.
Of course it is. You need to spend money to make money.
But more importantly, you need to get that money quick.
If you’re expanding, and don’t get funded fast, your projects halt. So you lose money, through lost opportunities.
Don’t let that happen to you. Make sure you find funding sources that understand your need for quickness.
Absolutely! You can try Seek Capital.
They provide your business the funding it needs – and without restrictions (a 92% approval rate).
They ensure a smooth expansion, without halts or unpleasant rejections.
Visit their website, and learn more about their services!