How To Grow Your Business Without External Debt!
Q: Can a business grow without any external funding or bank loans? K. Albright Madison WI. USA
As a small business owner myself, I have very strong opinions on this. Given this economy and based just on what you said, I would strongly encourage you NOT to go after external funding. You would be saddling your company with debt and that could have the potential for bringing you down. I prefer the multi-revenue stream model. Let me give you an example of what I mean. When I first started my company I had $35.00 and worked from an end table in my living room. In a few years I had built it into a very successful and debt free firm in the Seattle Metro area and netted over $1,000,000 in annual revenue. Here is how I did it.
For the first two years all profits were immediately reinvested back into building the foundation of my company (and yes, I did pay myself a small salary during that time so I could continue to work on my business). It sounds like you have already done that, which is great. Once I arrived to the point that it seems you are now, I continued to reinvest my profits, but this time instead of building the company foundation, I began to build additional supporting revenue streams into my company by offering new service and my own product line. So, my suggestion to you is to get your staff together (4 heads are better than one) and look carefully at your business model. Ask yourselves a few questions.
- What is it that we do?
- Who are our clients?
- What needs do they have that are not yet being met and how can we serve them better?
Given our current global situation I would suggest that you incorporate a strong online presence with a primary focus on customer experience. In other words, create an online presence that your customers will enjoy and want to return to…often.
I want to talk about one more thing that I believe was the pivot point in my companies success and will go against mainstream business philosophy and that is this. I NEVER took on personal debt. Nor did I leverage or liquidate any personal assets. I still don’t to this day. Remember, the “guru’s”, investors, and so called traditional business insider make a living out of creating debt. But right now and I predict for the next three or four years any type of debt could be a huge liability with devastating effects. If I need or want something I create a new dedicated revenue stream to fund it. If you do just this one thing your opportunity for success grow exponentially.
Hopefully this will set you on a path to inspire ideas to develop additional revenue steams. I have one more resource for entrepreneurs just like you that will guide you step by step. It’s titled Business Genesis. Please pay close attention to chapters 10 and 11. They give very specific and user friendly ways to secure your financial picture. If you feel like you could use some one on one help please feel free to Contact Us with any questions you might have or you can always reach out to us on Twitter.