Your Business Funding Strategy Gets Your Business From Here To There, As Quickly As Possible

Tackling a business funding strategy can feel a lot like herding a pack of cats. The more dynamic your business is, the truer that becomes.

And it doesn't get any easier as time goes on.

Whether your business is in the planning stages, or has been in business for several decades, there are a few preliminary steps you need to take before you step in front of a lender or investor.

Step One: Figure out where you are.

This isn't as easy as it sounds. While there are some general guidelines in the development of a company, there are wide variations on the them. For instance, a company that has been around for five years hasn't necessarily established itself in its industry. It could be still investigating its product, as with most biotech firms.

So take a reality check. List out everything that you have accomplished to date, such as

• filed three patents
• established two national territories
• created Advisory Board with seven very strong members
• hired a design firm to design packaging
• increased sales by 38% in second year
• identified new market for service
• landed 18 strong corporate clients

Note that there is nothing about "hiring people" or "moving into new quarters". Those are things you have to do to make things happen. What you want on your list are those things that really happened -- real accomplishments.

Step Two: Figure out where you want to go

You would think that everyone has this part of their business funding strategy figured out.

But they don't. Sure, everyone wants Success. But what defines that Success?

• Does making $X in sales create success?
• Does affiliation with a large company make yours successful?
• Does winning the Nobel Prize make your company successful?

Whatever it is, define it. (The Nobel Prize is probably out of line. Let's keep this sort of realistic.)

Step Three: Figure out how to get there

If you've done a good job in Steps One and Two, this should be a piece of cake.

Either you're on the right path, or you're not. If you're not, fix it. And if you can't fix it, either close up shop or figure out what your goal really should be.

You should now know what type of business funding strategy you need to put in place. Short term? Long term? Credit based? Equity based? Some conglomeration of alternative financing?

Whatever it is, it will be the absolute best funding strategy for your company at this point in time.

Next week, when you get an unexpected huge order, all this planning will be for naught. But, hey, that's the joy of being in business.

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