Planning for business growth

Are you determined to grow your business? If so, it is crucial to define your desired outcomes. Once you have a clear vision of success, strategize the steps you need to take in order to accomplish your goals. Businesses should develop an action plan for the following 12 months, 3 years and 5 years. Once you establish a distinct vision, you will be better positioned to identify potential sources of external financing.

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Determining the business need

Take the time to analyse and determine the essential requirements of your business.

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• Are you aware of your strengths and areas that need improvement?

• Have you established specific objectives and possess the determination to achieve them?

 

Having a strong foundation in these aspects will prove beneficial when presenting your business to potential investors in the future.

 

Review the options

Beginning the search for finance can be a daunting task, as the multitude of options can be overwhelming. It is advisable to familiarize yourself with the various choices available before making a decision that suits your needs. It is important to exercise caution when it comes to over-leveraging your business, as this could potentially deter certain investors in the future.

 

To simplify your finance search, consider breaking it down into steps. One of the first steps is deciding between equity finance and debt finance. At a basic level, equity involves selling shares to raise money while debt involves borrowing money. Your choice between the two will depend on various factors, such as your stance on ownership and growth. If you're willing to sell a portion of ownership and your business is poised for substantial growth in the long run, equity financing may be the better option for you.

 

Identifying finance

After determining the most suitable finance option for your business, the next step is to actively seek out an investor or finance provider. While it may be tempting to accept the initial offer that comes your way, it is crucial to maintain flexibility and explore various possibilities to secure a deal that aligns with your needs. This could involve finding the appropriate debt structure or establishing a beneficial relationship with the right investor.

 

Securing the finance

When actively seeking investment or debt finance, it is common for businesses to be required to present their business plan and ideas. However, view this as a chance to find someone who shares your belief in your business. An investor or lender can provide you with more than just financial support if you know what you are seeking. As the one who knows your business best, take the opportunity to tell a compelling story. Be sincere and enthusiastic, as this will increase the likelihood of finding someone with whom you truly connect. Keep in mind that this partnership could have a lasting impact on your future of the business so take the time to ensure it works for you.

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Contact us for support

Further information on raising finance and funding can be found on our funding hub. Businesses engaged in Innovation Net Zero can benefit from the expertise and support provided by our specialists.