| The Best Ways to Fund Your Business Expansion Plans

Posted in Business Financing at 9:00 AM by Loftis Consulting

Most business owners have big plans for the business and where they want it to go in the years ahead. That’s perfectly normal, but how are you going to find the money to fund all those plans? It’s easy to come up with plans for a business expansion, but it’s never so easy to actually fund them. It’s a problem that many business owners run up against. However, there are plenty of interesting ways to generate the money you need for your expansion.

 

Selling Shares

Selling shares is a great idea if you’re willing to relinquish a small amount of control over your company. You can still make sure that you own the majority of the company’s shares, meaning you retain control. Every share you sell will raise a small amount of capital. If you sell enough of them, and your share price is fair and reasonable both for you and you the stock market investors buying them, you could raise a considerable sum. This money can then be used to grow your business and take it in the direction you think is best for its future.

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Invoice Factoring

Does your business have a lot of old invoices that remain unpaid? It’s a problem that is all too common for businesses. However, you can get around this problem by using those invoices as a source of funding for your business. This is called invoice factoring, and it’s something that more and more small businesses are starting to make the most of. There are plenty of external companies that can help you out with this kind of funding. Just do some more research into it, and learn as much as you possibly can about it before making your final decision on the matter.

 

Appealing to Investors

Another way to get money from investors is to appeal to them directly. This involved presenting your idea and information about your business to a small number of investors. They might be investors who have a particular interest in your market sector. Or they might be venture capitalists looking to see a relatively fast return on their money. You need to be professional, have some strong ideas, and be able to present them in a coherent and appealing way if you want to make a big success of this. It’s not easy, but it can be done if you take the right approach.

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Reinvesting Profits

If your business is looking to expand and branch out, it must already be making money. So, why not start reinvesting some of the profits that the company is currently raking in? Rather than paying yourself more or paying out dividends to investors, you could use that money to take the business further and expand it in the way you want to. Of course, this only works if your business is in profit and managing to more than cover all of its existing costs. But if that’s not the case right now, maybe expansion shouldn’t be at the forefront of your mind anyway.

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