There is no business that remains at a status quo; it has to change with time. This is a result of new opportunities, competition, increased market share, challenges and market changes. You therefore have to adapt to keep growing and stay ahead of competitors. Developing and implementing a growth strategy will come in handy during tough times. It is common for potential investors to refer to your online performance to gauge the state of your business making it important for you to work on improving your alex rank.
There are different ways to expand a business depending on its nature and the level you are looking to expand to. The larger you intend to expand your business, the more capital you require. In cases where a small expansion is required one can inject their savings to cater for expansions. For large expansion you need to seek investors; this could be family, friends, suppliers, private and venture capitalists, institutional lenders (banks, co-operatives) and other government funded entities.
Before seeking and accepting investors into the business, you need to understand their interests and objectives.
- Institutional lenders are most interested in building their clientele as well as return on their investment. They do not mind slow and steady returns since they are aiming at future additional investment you may seek from them.
- Corporate venture capitalists aim at accessing new technologies and have high expectations on growth and performance. They assist the business in forming strategic alliances and corporate partnering
- Private venture capitalists’ main objective is to get fast high return on their investment. Their other interests include getting access to new markets and combining expertise to produce new products. In most cases they like to have a strong voice in the management affairs of the business.
After knowing what the investors want, position your business to meet their needs and use a business plan to articulate your intentions for the business. The next step is to negotiate your terms; it should be done having in mind the specific objectives of the investors.
In many cases, entrepreneurs and business owners struggle to get attention of investors. Some of the ways you can simplify this is by; creating a realistic budget, understanding potential investors, pitching at your level (if you have a small young business pitch to less known investors who support your kind of business and vice versa) and have a strong online/ social media presence.