You have taken your business as far as you can go with your current funding, you need to keep your business afloat, or some unexpected calamity has befallen your business. These are the three ways you can tell your business needs funding. When you just started out in your business, you needed capital to launch your product or service. It’s no secret that businesses receiving solid funding from the beginning survive and thrive better than business receiving little or no funding.
Growing Pains
According to 1st Select Capital, “To understand why you need additional funding or what causes may have triggered financial crisis, you have to calmly assess your current situation.” If your business is growing faster than you anticipated, then you need to figure out what’s happening with your cash flow. Are you in fact spending more cash than you anticipated on spending? Are there programs or new products you want to put forward? Are you growing out of your current building or facility? Do you need to hire more employees?
Crash and Burn Scenarios
Your business may be going through a rough patch. You need funds to maintain your business before it crashes and burns due to poor sales or inadequate marketing. You could hit the panic button when you see your high performers leaving for greener pastures or you could offer them incentives to stay. You may have competition issues where your competition is drawing your customers away. Steven Cody in his article “8 Signs Your Business is Ready to Seek Financing” states that one of the signs that your business may need funding is that your employees are being overloaded with work.
Natural Disasters and Other Crisis
Natural disasters happen. Your business will need funding to rebuild. You may need to hire temporary employees or provide your current employees will compensation due to injuries received on the job. It is definitely prudent to have a cushion to offset these types of calamities.
You want to remain innovative with your products and services but don’t have the funds for what needs to be done. You discover that your inventory is short or the parts that you thought were available to ship are not available. There are many unforeseen circumstances that your business can find itself in that you may need funds to resolve.
In the first scenario where your business is growing faster than you anticipated, you need to analyze your current needs. The slide share presentation “5 Signs Your Business Needs Funding” denotes that thorough planning for the unexpected is prudent and saves you time and money. Growth opportunities for expansion are often tell-tale signs that your business needs funding.
