As a business grows, it needs money to finance its growth agenda. Getting this money is never easy, especially at these tough economic times. Here are a few tips on how to get funds for your existing business.
Sell part of your assets
You can sell the assets that are no longer productive or are beyond their best performance levels. As you make the sale, remember that even if an asset is old, it does not have to be sold at a loss. With proper market research and advertising, you can get great value for your old assets. Clear your old cars, furniture, and fittings as well as machines and get the funds you need to grow your business.
Sell production rights
You can sell production or distribution rights of some of your products to other businesses. Indeed, you can sell out the poor performing departments of your business to other businesses and make a kill. You can also let other businesses sell products under your brand name. For every sale made in this way, such companies will give you a commission based on a pre-determined formula.
One way of getting funds for your existing business is to borrow money from banks and other money-lending financial institutions. It is always easy to get a loan from a financial institution as long as you have a good credit rating. Given that the business has been in operation for some time, it has already built a name for itself in the financial field. It probably has audited financial statements. It may also have a sound business plan, so the business and financial risks are lower. These are stepping stones to getting a loan from a financial institution. If you want to get a loan, visit https://kapitalkassen.no/forbrukslan.
You can always give a proportion of the ownership of your business to outsiders. You can float shares of your existing business on an organized securities exchange or invite private investors to buy a stake in the ownership of your business. If the business is already listed, you can issue bonus and rights issues to shareholders. They will dig deeper into their pockets and give you the money that you so badly need. While floating your existing business helps you get funds and diversify your risk, it requires that you share the profits and losses of the business with the shareholders.
Actually, as a matter of sound corporate governance, your objective will be maximizing shareholders’ wealth. The business will no longer serve your selfish interests only. Floating a company on an organized securities exchange is a bit bureaucratic and procedural. It may not be a good option if you are looking for quick money.
A business is either investing or doing nothing. An existing business should be able to identify sound investments in the market and venture into them. We all know that identifying the best investment in terms of risk and return is not an easy task, but a business can do its best evaluation and make a good choice. Additionally, with investments, there is the initial cost of getting into it. Here, we are assuming that the business can afford to invest a few of its resources without straining its operations.