Raising finance for a business is a key entrepreneurial skill. Any person involved in starting and running a business will at some stage have a requirement to raise finance for their business. Even before they commenced the business they would have had to raise some finance to make a start.
There are many very successful businesses that have commenced and grown with very little finance at the outset, and that have managed to finance their growth by some very creative methods. Any emerging or growth business will come to the stage where it will need to raise finance to fund the expansion of the business.
One of the catch twenty two situations facing many businesses is the more the business grows, the more money they require just to fund their debtors. Then it follows that any businessperson will find them self asking the question, why would someone lend me money or invest in my business? And, whom can I approach for some business finance and how can I approach them?Then, what do I need to do obtain that finance?
There are wide ranging options for raising business finance that we will look at in this manual, from the obvious ? though often difficult and old technology approach – of asking the bank manager, to some new technology and very creative methods, including funding from a business angel, venture capital or even taking on a partner or shareholders. By tightening up and improving their day-to-day procedures and collection of money owing them many businesses would greatly reduce the need to raise extra finance.
The funding source that is right for you really depends on your business needs and it is recommended that you seek advice from a professional, such as your accountant, before embarking on any particular option.
Think creatively and be innovative ? there are many options, including interest free ones, for raising business finance that you can use.