Business Funding for Small Companies

It takes money to make money, so the proverbial saying goes. Businesses have to consider their finances for so many purposes, ranging from survival in bad times to bolstering the next success in good ones. How you finance your business can affect your ability to employ staff, purchase goods, acquire licenses, expand and develop. While business funding for small companies isn’t necessarily as important as vision and a great product, they are crucial to making the good stuff happen.

Starting Capital

Every new venture needs seed money. Entrepreneurs only have dreams and ideas until they have some capital to put their ideas in motion. Whether it’s a product or service, you will need a way to create and deliver it — as well as enough money and time to lay the groundwork of selling and establishing important relationships. Most business owners face the critical choice between debt and equity financing. A small business loan leaves you free to own and have absolute control over your company while it also leaves you lasting financial obligations.

Growth

Success can bring a business to a difficult crossroads. Sometimes to take on more business and attain greater success, a company needs significant financial investment to acquire new capital, staff or inventory. When business managers hit this juncture, they have to wade through their financial options, which may involve infusions of equity capitals — perhaps from venture capitalists.

Payroll

Nothing spells imminent death like a company being unable to make payroll. Even the most dedicated staff won’t stick around long once the pay checks stop. The larger an organization gets, the larger the labour costs. Above all, companies have to ensure they have enough cash on hand to make payroll for at least two payroll cycles ahead — if not more. Financial planning to ensure your payroll accounts are in strong shape are essential to the integrity and longevity of your company.