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24/10/2016

What do ambitious companies need to think about in order to grow?

When planning business growth it is important to make sure you have enough money available. While some businesses are lucky enough to have ready cash,most raise external finance. Couple this with a strong funding partner where goals are aligned and you can actually help to accelerate growth. For any company aiming to grow, no matter their size or how long they’ve been trading,there are a number of things to consider.

Research and planning
A well-researched proposal will build credibility, inspire confidence and help gain potential funders’ buy-in.

Timing
Build in time to raise the finance you need. Finding a funding partner whose interests match yours is critical and getting it right first time can save hassle in the long run. Engage advisers early on. They can often streamline processes and provide independent challenges before you pitch directly to funders.

Flexibility
Demonstrate that you can be flexible and can learn from mistakes quickly. Having a ‘plan b’ is wise as is being able to seize unexpected opportunities as they can be a game changer. It’s important to raise sufficient cash to cover contingency plans. In the due diligence process most funders will examine forecasts. If you don’t have any contingency this will present a weaker investment case.

Team
The right management team is essential. Recognise your strengths and weaknesses and be prepared to take on new personnel with skills to fill gaps.

Measure your success
Choose key performance indicators to measure your progress. Make them specific to your business, and easily accessible. They will help you keep things on track and provide an early warning signal to take remedial action if necessary.

Making it happen
Finding the right funding partner is key. A good finance provider will bring more than just money to the table; they will add value to your business. Foster a good relationship and it will usually result in a better outcome for all.