Raising capital: Why your business doesn’t need the bank
No matter your industry or the size of your business, opportunities for growth will arise when the market is booming. The prospect is exciting for some business owners and daunting for others, but when the idea of expansion presents itself, whether that means more staff, new machinery, bigger premises, or investing in marketing, many find themselves in a position where they need to raise capital in order to move forward.
It can be frustrating for business owners who can’t seem to find the funds when it’s a classic case of catch 22. There is, of course, the option to bite the bullet and go to the bank for a loan, but what if the banks aren’t lending to businesses like yours? Are there other ways to get the money your business needs without having to jump through hoops?
Yes. If you need capital, there are many options available that can help your business grow without the need for a loan with costly interest rates. For example, forming an equity partnership allows you to meet your growth objectives while sharing the fulfillment burden with another business.
Imagine you receive an order your business can’t afford to turn down, but you can’t afford to follow through with it alone. It’s scenarios such as this where a strategic partnership could prove to be the perfect solution. They may provide you with the cash, expertise, or resources you need to see your order through in exchange for an equity stake in your business. Or maybe you choose to work with a partner who will invest in shares to fund your growth but doesn’t have much strategic input.
However you decide to pursue capital, you might be surprised to learn that these avenues of finance can both be obtained through the M&A process. With M&A being such a widely misunderstood term, some business owners only associate it with either buying or selling a business, when, in fact, it looks at a whole host of opportunities for potential business growth.
Whether it’s forming a strategic partnership or getting capital infusion from a partner, it all starts with understanding the possibilities. At Generational Equity, we take the time to work alongside business owners, advising them on how to make the most of their business and its potential routes to growth. Our conferences are complimentary and give you the high-level knowledge and insight you need to make an informed decision about where to take your business next. Whatever your goals, wherever your business is headed – it all starts with Generational Equity. We’ll get you there.