How new investment can help your business
Going through a round of investment isn’t something to take lightly. It will either involve diluting shares, or selling your own equity in your business. And not every business needs investment – if things are going smoothly, and you don’t have any immediate plans that will require a lot of upfront capital, then it might be worth holding off for the moment. But when you’re growing, or have plans to grow, finding an accurate business valuation and securing funding is vital to get things started – and remember that you can see how much your business is worth with Pomanda’s business valuation calculator. Here are three growth areas where investment can push your business to the next stage.
Hiring New Staff
Bringing on new people helps you to expand into new areas or do more in the areas you’ve already been successful, but at first it will cost you. You’ll want to find the best possible new hires for the long-term, but that may involve outsourcing your HR requirements, bringing in headhunters – you don’t want to do your hiring on the cheap. Seek funding and you won’t have to compromise on recruitment.
Developing New Products or Services
Providing something new, fulfilling a need where you can see a gap in the market, will bring rewards eventually, but requires investment in analysis, research and development, training for employees, and marketing. If you want to offer a new service, for example, then whoever will have to deliver that service will need adequate preparation, and that may involve bringing in training from outside your business. Make sure you have the funding to expand into new products or services.
Building up contacts in a foreign market, understanding a new regulatory and tax regime, and setting up new offices abroad all make growing internationally an expensive step to make. But it has its rewards – it opens up new markets without your having to develop a new product, and if you can get over the initial hurdles it will give a big boost to your business. However, the initial stages can be jittery, and you’ll want to get it right – with investment, you can retain an international expansion consultant who can advise you and introduce you to contacts, and you’ll have the money to hire adequate staff. Foreign growth isn’t something to take on lightly – be sure to get the funding you need.
Address Your Weaknesses
Any business will have processes that work better than others, so there are always improvements to be made. But addressing those issues can require extra capital to solve the problem effectively. If you want to carry out a comprehensive review of systems that need fixing, you’ll need the funds to address them properly – devoting managers to examining your operational processes necessarily means they won’t be doing productive work elsewhere, for example. Investment doesn’t just have to be about expanding into new areas – it can also be for performing better at what you’re already doing.
There are a range of opportunities that SMEs can take to find growth, but to do them well you may need investment. Don’t miss out on the potential your company has – secure the initial capital you need to make your next stage of growth a success.