At first glance, it might seem as though money is the biggest challenge to funding your business for growth.
Funding is one of the main obstacles that keep businesses from scaling. And sure, money is a big part of the problem. Either you don’t have the money or you can’t find people to invest in your business.
But in plenty of cases, money is not the only reason you’re having trouble scaling. The problem is also how you build your business. Here are some of the biggest challenges to funding your business for growth – and how to overcome them.
Are You Losing Time Unnecessarily?
Whether you’re planning to grow your business by yourself or are thinking of finding someone to invest in your growth, one thing is certain. You need to make sure that every aspect of your business is running as smoothly as possible.
In both cases, a smoothly running business is essential. Investors don’t want to put their money in a business that’s struggling to manage itself.
And you won’t be able to scale if you’re constantly fighting for time. There are a lot of different areas where you could be losing time.
How easy is it for your team members to communicate, share documents and files, and find the information they need in previous communications?
Do you have a system set in place for team communication? If not, such an investment is definitely worthwhile.
Restricted usage can hinder your progress. With cloud computing, everyone in your business can access any tool, software, and so on.
And they can do so from wherever they are, using whatever device they want. Plus, cloud computing can improve your teams’ collaboration. Your employees can work from anywhere, at any time.
Cloud computing is safer for your business, and your computers will be faster. These are just some of the benefits of using cloud computing.
Cloud storage (such as Dropbox) helps protect your files and documents so that you don’t lose anything.
Another big benefit is that cloud storage means anyone on your team can access these documents easily, whenever and wherever they are.
Marketing automation does more than save you a lot of time. It also increases your results and helps you nurture your leads faster and more efficiently.
This is one of those investments in your business that can make a huge difference to your overall success.
Social Media Marketing and Automation
Social media is a great promotional tool for businesses. But if you’re not making full use of tools that can help you manage it and automate some of your tasks, social media will eat up hours of your day.
Accounting software helps you save time managing your finances, for one, but it also helps you make better financial decisions. For example, you can save money when calculating your taxes.
Are You Saving and Maximising Your Profits?
As I mentioned earlier, lack of funding is one of the biggest (if not the biggest) obstacles keeping businesses from growing. You might have great ideas and amazing plans.
But if you can’t afford investing in your business, can’t find potential investors, or can’t get a loan, all those plans will be virtually unreachable.
Try to keep a close eye on your finances (this is where the accounting software I talked about earlier comes in handy!).
To make sure you’re not haemorrhaging money unnecessarily, ask yourself the following questions.
Do You Really Need to Hire, or Can You Outsource?
Consider outsourcing tasks such as social media management, written and visual content creation, project management, and admin tasks. Doing so can help you save quite a bit of money as opposed to hiring someone full-time.
As a small to medium enterprise (SME), you can’t really afford to hire someone for every task you have. For example, it wouldn’t make sense to bring someone in full-time just to keep up your business blog.
But outsourcing the maintenance of your blog will free your time so that you can focus on more important tasks – the tasks that help bring in more money for your business.
And finally, outsourcing will prevent you from paying for all the extras (such as health insurance) that come with full-time employees.
Where Is the Bulk of Your Money Going?
What are your biggest expenses? Evaluate all of your spending on a month-to-month basis to find out where you’re spending excessively.
Chances are, there might be something that you can do about the amount you’re spending. You might negotiate a better deal or find a competitor that provides a similar service, but at a smaller price, and so on.
Do You Really Need to Pay for That?
Sometimes, you might find yourself paying for resources that you don’t actually need. Monitor your finances regularly, and make a list of all the payments, big and small, that you make on a consistent basis.
Then spend some time going through each one. Unless a payment is essential and unavoidable, ask yourself, is this payment helping me make any money for my business?
Is it saving me a considerable amount of time and helping me focus on other tasks? If the answer is no, then it might be that you can cut that spending and not even notice it’s gone (except, of course, for more money in the bank).
Even if you’re cutting small payments, every little bit counts, and that money could be better used elsewhere.
What Are You Doing with Your Profits?
Sometimes, profits need to be put back into the business, but that’s not always the case.
What’s another way that you can use your profits? Quite simply, save them and grow them.
Try to put your profits aside where possible, and make them work for you by investing some of them.
It’s preferable that you have a mix of different investments with a focus on lower risk investments. These might grow at a slower rate, but there’s a much lower chance you’ll lose your money.
You can even test your investment skills by using a tool such as Swanest to create a test investment portfolio to see how you’d perform:
Funding Your Business: Conclusion
The sooner you start thinking of how to grow and scale your business, the better. Try to automate and streamline all that you can about your business.
Have a firm grasp on your finances to eliminate unnecessary spending, and you’re going to be one step closer to scaling up your business.
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