39 Reasons Why Businesses Should ALWAYS Be Ready to Seek Capital

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39 Reasons Why Businesses of Every Size Should ALWAYS Be Ready to Seek Capital

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Even if your business is too small, or does not need capital right now, learn why you should always have a funding plan ready-to-go.

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raise money for your business funds for your small business capital working capital investment capital funding angel capital secure venture capital investment funds small business funding small venture capitalists money equity investment debt money sources grants for business growth

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994 Words; formatted 65 characters per line Distribution Date and Time: Thursday Sep 22 03:30 PST 2005

Written By: Allan Sabo Copyright: 2005 Contact Email: results@alticonsulting.com

Article URL: www.alticonsulting.com/newslet-2005-08-01-Capital-Promo.htm

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39 Reasons Why Businesses of Every Size Should ALWAYS Be Ready to Seek Capital Copyright © 2005 Allan Sabo ALTI Success Strategies www.alticonsulting.com

39 Reasons Why Businesses of Every Size Should ALWAYS Be Ready to Seek Capital

by Allan Sabo

OPPORTUNITY KNOCKS

Imagine this scene: You've just hung up the phone with a prospective client who intends to retain your firm or purchase a quantity of your product that would increase your annual revenues by better than 50 percent.

The client is not shopping, meaning the project or sale is yours, unless you create a reason to lose it. Financially, your business has been growing, but you're already stretched a little thin from upgrading your computer systems and putting down that deposit on some new equipment.

You're ecstatic at the prospect of landing this client - the exposure alone is priceless! This is the big break you've been praying for that will catapult your business to the "next level." You ponder what such an opportunity would mean for you, personally - allowing yourself that long-deserved raise, getting your son the braces he needs, and treating yourself and your spouse to a full 2-week Hawaiian vacation.

REALITY SETS IN

Then, like a cold splash of water on your face, you wake up from your daydream, as a flood of fears begins to pour through you. Your mind reels with thoughts like:

*** "I'm going to need to get that $5,000 certification I've been putting off."

*** "I'll have to add a part-time assistant for $2,000 a month."

*** "Oh, and then we're going to need a larger space - that will run $3,000 for the move and $600 a month in additional rent."

You have 72 hours to accept the contract. The downside, or risk, of accepting a sizable contract with such a high-profile client is that, should you fail to perform or deliver, you would lose your fees, plus be liable for an expense reimbursement to the client that could cost you as much as $50,000. You must also factor in that your first payment on the dream contract is three months away.

As your mind rushes . . . you calculate the costs and how you'll pay for it all. You're going to need at least $17,600 (curtailing your benefits to the bare bones) - and that's leaving little room for error.

Damn! You want to capitalize on this opportunity, but to do so would constrict your cash flow so much for the next few months that you might not survive to reap the benefits of the contract.

WILL YOU BE READY?

No one wants to get caught in this situation, but sadly, it happens more often than you might realize. And the worst part of all is that it doesn't have to happen, ** IF YOU MAKE A STRATEGIC PLAN AHEAD OF TIME!** As long as you've laid the proper foundation, there are many sources of capital you can turn to, regardless of the type of business you're in.

Have **YOU** laid the groundwork to raise the funds your business will need when that golden opportunity emerges? Will you be able to react and take advantage of a seemingly miraculous chance to grow your business in a huge way?

Whatever the business - whether you're a consultant, a freelancer, an independent rep, an Internet business, a franchise, a distributorship, or any other kind of business you can imagine - opportunities are lost every day when business owners are not prepared to respond because they failed to adequately prepare.

This is all about planning ahead. It's not necessarily about having money to spend on your business RIGHT NOW; rather, it's about being able to put your hands on money, at a moment's notice, to fulfill a large contract, order, or other fiscal need.

WHAT COULD ADDITIONAL CAPITAL MEAN TO YOUR BUSINESS?

Additional capital doesn't have to be relegated to once-in-a- lifetime opportunities. There are lots of other reasons to raise additional funds that could propel your business forward in a big way. For example, you could:

1. Provide additional training for your staff 2. Complete or update special certifications 3. Attend seminars or workshops in your field 4. Go back to school for that advanced degree 5. Take a class 6. Hire additional personnel 7. Outsource some of the work that's bogging you down 8. Hire specialized consultants 9. Hire expert freelancers 10. Invest in trusted advisors 11. Strengthen your management team 12. Upgrade your product 13. Create a new product 14. Open a new distribution channel 15. Explore international opportunities 16. Open a new location 17. Relocate your business 18. Move into a larger office/space 19. Renovate your office/space 20. Buy your own building 21. Change your business focus 22. Create or purchase a franchise 23. Create or purchase a license 24. Protect your intellectual property 25. File for a trademark 26. File for a patent 27. Get legal help to review contracts 28. Update your computers 29. Build a better Web site 30. Develop custom software 31. Upgrade your technology 32. Purchase new equipment 33. Invest in a fireproof safe 34. Improve your marketing 35. Purchase brochures and other marketing collateral 36. Increase your public relations efforts 37. Test alternative advertising channels 38. Sponsor a community event 39. Support a local charity

MISTAKES TO AVOID

Don't make the mistakes most business owners make by either seeking far more capital than their ventures warrant, or thinking they don't need any capital at all. You don't have to use the funds immediately, but you must have a clearly identified source, should the need arise.

Should a super opportunity arise for you, take some time to thoroughly consider the consequences. Don't say no out of hand, but don't accept it in haste, either. Make sure you spend some time determining whether you are realistically positioned to complete the contract. The thing is, it doesn't matter how good the offer is - if you can't fulfill your end of the deal, no one wins.

LEARN HOW TO FIND FUNDING

If you think your business could benefit from additional capital but you're not certain where to go for funding or how much is appropriate to seek, then you are encouraged to attend my free tele-seminar, (details available at www.MarketingforMoney.biz), where I will offer "Practical Capital-Raising Strategies for Start-ups and Small Businesses." You've worked hard to build your business to this point. Come learn how to make it even better by securing the funding BEFORE you need it.

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Allan Sabo is President of ALTI Success Strategies, and author of the audio/e-book package, "Marketing for Money: Practical Strategies to Fund Your Dream Business." The book is available at www.MarketingforMoney.biz. ALTI is a full-service virtual marketing agency that specializes in growing small businesses through Internet marketing, e-commerce, and capital marketing services. Mr. Sabo can be reached at 480-315-2985, results@alticonsulting.com, or on the Web at www.alticonsulting.com.