WANT TO EXPAND YOUR BUSINESS? HERE ARE THE FINANCING OPTIONS
Posted by ellaava on May 30th, 2019
Congratulations if you are planning to expand your business. No matter how long you have been on the market, you will open a new outlet or launch your product in a new city if it you envisage the chances of success. You may have found your audience, made marketing strategy and set a business goal, but a successful penetration requires a good amount of cash.
It is likely that you fall short on cash when you want to expand your business. The most popular way that almost everyone knows is taking out loans in Ireland. Well, what if you do not want to bear the debt pressure? Are there any other alternatives? Yes, take a look at the following points:
Find an investor
Look for a partner who could be ready to invest in your business for either a one-time event or company’s ownership. You should have a clear marketing strategy to generate revenues that the investor will like to go through. Getting money out of one’s pocket seems to be a labyrinth, hence make it as impressive as you can. Your proposal may be turned down if your approach is not clear and effective. Work on the areas that will help you convince your investor.
Crowdfunding is a way to raise a small amount of capital from a large number of people by using crowdfunding websites and social media platforms. They bring together entrepreneurs and investors. Some of the popular websites are IndieGoGo and Kickstarter. Make sure that the cost of raising funds from this method does not set you back unexpectedly.
Use your credit card
Credit cards can also help you finance your business need. It will not affect your credit rating as long as you repay the debt within the grace period. The problem arises when you fall behind repayments. Some entrepreneurs take out personal loans as they allow you to borrow a large amount of money. Further, you do not need to repay the loan in one go. Equal instalments are much more manageable than settling a credit card bill. These loans come with the amortising feature, which means you will pay both the principle and the interest.
Raise money from your family and friends
Do not shy to ask your friends and family for money. It is not always possible for your loved ones to provide you with funds as they may be short on cash. Further, it is hard to believe that you will pay their money back. First of all, you need to convince them you need money genuinely for your business. Show your business plan and tell how you will use their money and how much you are expecting to generate funds. One of the biggest advantages of raising funds from them is you do not have to pay interest and if you do so, it will not cost you an arm and a leg. Try to make an agreement between you and the loan provider so that all terms remain transparent between you and your friend or relative.
The bottom line
You can find several other options to finance your business. If anyone of the sources does not fulfil your requirements, you can use the combination of them. This will help you raise a large number of funds. Each method works differently, so you must have a clear idea of your needs and repayment capacity. If you fail to settle your debt, you will fall in a vicious circle of debt. Raise funds only when you need them. Business involves great risk, so do not forget to consider this factor while borrowing money.Also See: Raising Funds, Out Loans, Marketing Strategy, Large Number, Business, Money, Funds
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