Have you looked at your financial books lately?
For any small business owner looking to not only stay in business but grow that business, finances mean a ton.
Unlike many larger companies able to withstand some rough financial patches, smaller companies tend to have much less room to struggle. If the latter companies get into a period of slow business that can sometimes spell doom when all is said and done.
So, where does your small business turn when cash is of greater importance?
Checking Your Financial Options
In the event your current cash flow is slower than anticipated, you may find yourself looking outside the company for help.
If so, those options typically can include:
- Investors – If you have investors, they may be asked to provide a little more cash influx in order to either steady your business or even possibly grow it. Either way; turning to them has pros and cons. In many cases, investors are those individuals and/or groups putting money forth to help one or more folks start a business. If your investors are asked to come around and put more money into your business venture, they may feel like you are struggling a little too early on. If that’s the case, some of those investments could turn out to be problematic. On the flip side, always be upfront with your investors, especially if they include family and/or friends. You may be coming to them for additional cash for all the right reasons, so clearly spell them out;
- Providers – Another option in adding cash for your business needs is turning to a payment solution provider. Such companies typically offer a merchant money advance, giving you the cash you need for whatever you need it for. Whether you are struggling a bit financially or you are looking to strike while the iron is hot and grow your business, the funds can be in your hands in no time. As such, you can sit back and relax a little bit, knowing that you have the necessary financial capital (at least for the time) to meet your needed cash obligations.
Should Family or Friends Be in the Mix?
- Relations – When money is tight for your small business or startup plans, there may be a temptation or two to involve either family and/or friends. Before you jump at the idea, think through all the possible repercussions of such a decision. For starters, what if things do not turn out as planned? Do you run the risk of ruining one or more relations over financial decisions? Secondly, what if things do work out, though your relation or relations want a bigger piece of the pie? They may claim that without their financial support, your small business would not have made a go of it. Once again, relations can become fragile and/or even non-existent. Always wade carefully into the family and/or friend loan waters, knowing that there is always the possibility of some backlash.
Reaching Your Small Business Potential
The dream of owning your own small business and seeing it reach its full potential is something you share with thousands and thousands of other Americans.
While some people prove to be great small business entrepreneurs, others will not have the same luck.
Knowing that possessing the proper amount of cash flow for your small business will likely always be the big elephant in the room; don’t be afraid to explore your options.
You may find that a payment solution provider is in fact your best option. In other cases, family and/or friends may be the right call. Perhaps those investors interested in your startup or growing small business, could they be your best bet?
No matter where you seek additional funds from, be sure to research and think things through.
When borrowing money from others, always know in the back of your mind how and approximately when you will pay them back.