When you were just starting your business, you probably thought that would be the hardest step.
However, as you may have since learned, it can actually be just as difficult – or even harder – to grow your business.
As with starting your business, you need to find funding again to take this next step. You also need to do so while maintaining your company’s current operation, which makes for an extra challenge.
The 3 Best Ways to Fund Your Growing Business
Fortunately, there are three proven options that will not only fund your growing business – but do so without requiring that you take a second job or otherwise spend time away from your company.
1. Family and Friends
Taking on friends and family as investors can be the best possible way to pay for your company’s growth.
Hopefully, they will offer far better terms than a traditional lender. This might mean you get charged less in interest or maybe none at all. They may even allow you more time to pay the loan back.
Unlike traditional investors, you may also not need to reward them with interest in your company.
Of course, much of this is only true if your friends and family know you – and your business – well enough to know you’ll be able to pay them back. If your company is still relatively new, they may – understandably – be more hesitant to lend you their hard-earned money.
2. Personal Loan
If you don’t have friends or family who will help – or you don’t want the risks involved with borrowing from loved ones – the good news is that personal loans are a great option, too.
For one thing, they don’t require any collateral on your part, at all. You don’t have to take on any partners or offer interest in your company, either – two considerations you might have to make by accepting help from friends and family members.
You also don’t need to worry about undergoing the same scrutiny as you would if you tried to secure a business loan. This makes it a really good option for people who want to grow a business that is still relatively new.
3. Industry-Experienced Investors
Yes, you may have to offer a stake in your company to attract help from an investor, but the exchange could be completely worth it and then some.
Don’t simply look for an investor with the money you need. Find one who has experience in your industry, perhaps someone who has already started and grown a similar business.
They’ll be a force-multiplier for your company because, aside from their money, they’ll also be able to help you face the same challenges they went through years before.
As an investor who has capital attached to your business, they’ll definitely have a very tangible incentive for wanting to see you do well, too.
Don’t Put Off Growing Your Business
You now have three options for funding the growth of your business. Utilize one of them right away.
Otherwise, you may find that a competitor is able to grow their market share while you remain too small to do the same.