Every day, financial pundits smugly tell you how to invest, but never tell you how to get the capital to do so. Well, luckily for you, I’m not like other financial pundits and I know where to find cash for a business.
This isn’t a magic trick. There’s no abracadabra nonsense. Instead, I’ll help you find money that you aren’t using now. You’re probably saying to yourself or the computer screen that it can’t be that easy, but trust me, it is.
There’s the obvious way to grow your business capital: just save. Yeah, you’ve heard that one (many times) before, but is it the best option? Let’s say you own a retail store and it’s doing well. You want to expand. In order to do so, you need capital. If you were to wait to save the money necessary to open another store, it might be too late. It could take years and the momentum you had gained could be nonexistent by then. So, what are you to do?
Well, you could borrow money, or potentially sell shares in or a part of your business to an investor. But if your business is growing, you want to do everything you can to protect your shares, the ownership percentages of your business. You don’t want to start giving this away.
The secret for finding more cash is just looking in unconventional spots and being creative.
Most small businesses are started by people who risk their own savings to get started, or borrow against a personal asset like their home, or what’s called “bootstrapping.” Rusty Shelton, founder and CEO of Shelton Interactive, knows this approach well: “I bootstrapped each of the businesses I have started and that brings a special kind of cash flow challenge because there isn’t a huge backstop in terms of cash (or gas for the engine). As such, I approached growth with a bit more of a measured approach to make sure I didn’t get too far over my skis.” Do you really want to go this route?
Another option a lot of business owners use is credit cards for cash. But that’s not ideal. They can have high-interest rates and usually require a high turnaround payback. It just adds more stress to an already stressful situation.
Now, this is thinking a little outside the box, but what if you asked your vendors? I’ve had clients do this! It’s a win-win for both of you. You’ll borrow money from them, pay it back with interest, and in return also be purchasing more of their goods to sell. Not magic, just an innovative idea.
Another option is looking to big customers. They already believe in your product, so why not sweeten the deal for them and make them lenders, float your owns bonds! They’ll be rewarded financially while they help you grow your business. Not abracadabra, just an “ah-ha” realization.
Don’t think it will work? It does. I’ve done this in my businesses and have helped others do it in theirs. And there are many more ideas! The secret for finding more money is just looking in unconventional spots and being creative. No hocus pocus or secret chants. What also helps is surrounding yourself with a Championship Team of Experts to advise you.
Access my FREE online mini-course (8 videos + worksheets) today. Learn the importance of having a leadership mindset and a championship team to fuel your success. Take the first step towards mastering your cash flow, finances, and life!