Ready for Growth in a “No Growth” Economy

Ready to Motor Forward

Bad Economy? I’m Ready to Go!

The economy is bad, therefore it is obvious I cannot grow my business, true?  Not necessarily true! Whether or not you can grow your business is more dependent on the actions you take in your specific market niche as well as what your customers are experiencing than what is happening in the overall economy.  Of course the overall economy has an impact on everyone, but it doesn’t mean your business must stop growing in a “bad” economy, any more than you are guaranteed it will grow in a “good” one.

The key is to stay focused on what products and/or services are in demand from your customers or potential customers and address their “must have” needs. Most importantly, stay in action, be in-tune with your customers and apply your limited resources to the areas you can control within your own market niche.  If you do this, your business can grow even when other businesses are declining.  Don’t get distracted by generalizations and the plight of others when it doesn’t have to apply to you!

 

Tips for Finding Funding

cliffMost entrepreneurs are constantly faced with the challenge of funding their ventures.  There are multiple Funding Model options available to address this challenge; depending on what stage of the life-cycle your business falls into.  To name a few: Self-Funding, Friends and Family, Strategic Partnerships, Grants, Economic Development Authorities, Incubators, Angel Investors, Venture Capital, Private Equity, Family Offices and various types of Financial Institutions.  Each of these Funding Models has its pluses and minuses.  Each has to be compared against the other to best understand which one or a combination of more than one will best fit your personal situation.  However, there are some general guidelines that can help you be as efficient as possible to stay focused on building your business and not spending more time than necessary looking for funding. Here are some tips that might help:

  1. Clearly identify what stage of the business life-cycle your business is in and  the amount of funding you require to move your business to the next level of the business cycle.
  2. Compare both your business status and resource requirements with the different Funding Models to see which Model(s) best match.
  3. Examine the risks and benefits that will result from the chosen Funding Model(s). Each Funding Model will impact you and your business in different ways.
  4. Once you have chosen a Funding Model(s), focus on Investors within that Model that make investments in businesses with parameters that match yours (e.g. management team, industry, product type, customer type, size of investment, revenue stage, product stage, etc).  Trying to convince an investor to invest outside their defined parameters takes a lot of effort with a very low probability of success.
  5. If a particular Investor is not interested in your opportunity, ask them to introduce you to someone they know within the same Funding Model that does invest in business opportunities like yours.