“The general who wins the battle makes many calculations in his temple before the battle is fought. The general who loses makes but few calculations beforehand”
As an entrepreneur growing a small business grows, one important challenge you will face is the need for additional capital. Your business may need the infusion of cash to procure new machinery, employ new workers, open a new outlet, launch an online marketing campaign, whatever the case may be. Most businesses think only of loans when there is need for expansion.
There are however other ways of growing a business without borrowing capital. Here are some ways to grow your business without incurring too much debt.
Examine your cash flow:
If you are looking for cash to expand, the first step is to check your cash flow. Before you realize it, your receivables from slow paying customers may suffice to fund a new project or expand the business. Tighten your payment policy and demand deposits or cash upfront.
Decelerate cash flow:
You may also want to preserve your capital by decelerating your cash flow. You can hang on to your cash flow longer through a number of ways. You can delay payments to vendors: instead of paying immediately upon receipt of the bill, postpone payment to the extent possible. You can even try to push the envelope further by negotiating a 45 days payment cylcle.Review your terms with vendors and try to negotiate a more beneficial term for you.
Form a strategic Marketing alliance:
A marketing alliance is a joint effort between your business and other companies to mutually build awareness of the benefits of your respective business products and /or services. By partnering with another business, your market suddenly expands without spending a fortune on marketing and advertising, as you are able to market to your partners’ customers’ base thereby boosting your cashflow
Work with financial and business advisors:
Seek the guidance and expertise of experienced financial and business advisers to help grow your business. Without resorting to borrowing, ask them to help you map out strategies to help increase profits, streamline operations, manage cashflow, increase the effectiveness of your marketing and guide your business as it expands.
Take stock of your non-income producing activities (e.g. internal operations such as inventory management and bookkeeping).make sure that these activities are able to keep pace with the growth of your business.
In other to take your business from one level to another, you need business intelligence. You need to understand your business enough to adopt strategies to grow it at minimal costs and manage its cashflow