Develop your business
Are you interested in opening your own business but have doubts about financing and development of a business? You think you know what you need? Financial Education is the starting point to develop the knowledge and skills that allow you to have healthy corporate finance.
Establish a strategy to reap the benefits offered by financial products and services developed for this sector and know their risks in order to promote the development of your business and avoid unnecessary borrowing.
Regardless of the size of your business, as an entrepreneur, you face different challenges every day in order to boost growth. One of the most important is to obtain financing in the best conditions. To do this you can use solutions such as:
- Plan payment terms with your suppliers.
- Reinvest your profits.
- Search for new investors.
- Get a line of credit with a bank, among others.
But before looking for funding, you must perform some tasks:
- Do not mix personal and family finances with business.
- Assign a reasonable salary to your functions within the company and do not take money from the profits. Reinvests.
- Avoid using your personal credit card to fund the company.
- Register your accounting and tax operations.
It takes into account the development of a business plan because you know if you need help in financing and how to invest it. It is a guide where a business is described, the market situation is analyzed and actions to be undertaken in the future, along with strategies to be implemented, both to promote a service or manufacturing a product set.
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To enhance the growth of your business, it is necessary to design a financial strategy. This is defined by the way they combine financing sources and fate you give. Ask yourself if you need financing (the key is to get the one that suits the conditions and economic capacity of your company. The credit is not the only source of funding) and what you use (look for the cost and terms of payment that you agreed, evaluates options on the market).
How much do you need?
It depends directly on the needs of your business as a raw material, inventory, machinery, equipment and infrastructure, among others. You should always see your ability to pay and your investment alternatives.
It is important to know all sources of financing, which are being divided into two: internal and external. Internal are e.g. new shareholder contributions, earnings and asset sales. External: vendor management; credits short, medium and long term; and raising capital.
Do you identify with the following characteristics?
- They are the ones who have a business idea supported by innovation.
- His creativity tends to generate ideas that break traditional market parameters.
- Their projects create replicable business models in different cities, states or even countries, and its ability to increase sales while maintaining its steady operating cost, are easily scalable.
- By the same token, it is common to have a very dynamic growth.
- Generate quality jobs with a global vision: they are ambitious entrepreneurs.
- 360° produce benefits (in addition to creating economic value, their projects help solve environmental, social and cultural issues, among others).
- They must act quickly to maintain their level of impact.
These entrepreneurs require financial instruments that are committed to their future. It is developing an ecosystem that offers attractive alternatives both to finance, to provide assistance and support required for the development of high-impact entrepreneurs, whether to trigger new growth companies (start-ups) or to carry a project of upgrading in existing enterprises (scale-ups).
You may also like to read another article on HeyGom: An entrepreneur is an inventor of ideas
It called Venture Capital which is intended for companies in early stages or starting operations and has high growth potential.
This capital is also often called Intelligent Capital because high – impact entrepreneurs also get expert guidance (mentors) who engage fully in the management of the company, to make it grow.
With Venture Capital as a means of financing, high-impact entrepreneurs gain the support, guidance, experience, knowledge and business relations of investors and specialists in their area of business.
If you are an entrepreneur looking for high impact raise capital from investors, do not forget:
- Make sure that the opportunity you are looking for is still in force in the market.
- Determine which is the amount of capital you require and adjust realistically with the potential of your company.
- Sell your project attractive.
- Accept and value the recommendations that investors, mentors or specialists make your venture. His experience will enrich your project.
- Knock on every door necessary. If your project was not attractive to an investor does not mean that no other willing to trust you.