Business Growth
Business growth refers to the stage when an already expanded business seeks additional options to generate more profit. Business growth capital is critical for all businesses, and choosing the right one for your business takes expertise and market knowledge — as each business / company is different. Many companies design their own structure for more growth and to mitigate risk — rather than fitting their capital need to a pre-existing structure. Business growth (capital) depends on resource availability and most often requires investment to be made upfront.

Choosing the right business growth capital usually depends on the following factors :

  • The size of the capital raise.
  • The cost of capital
  • The flexibility of capital.
  • The term structure of capital.
In order to arrive at the best business growth capital solution, these four factors must be properly optimized. And because business growth is so critical, a majority of businesses / companies consult a financial advisor to evaluate and source capital. A financial advisor has both market intelligence and expertise in making deals. He or she will be able to use and give importance to all four of the factors and arrive at a business growth capital solution that satisfies the business’ / company’s unique need, and allows its scale-up vision to take flight.

Business growth capital solutions can involve any and / or of the following growth strategies :

  • Market Penetration — Increasing market share using the current products or services; does not involve moving into new markets or creating new products
  • Product Development — Creating new products to serve the same market.
  • Market Development — Introducing your products or services to new markets (i.e. new city / state / country, new demographic group, consumer to commercial market, etc.)
  • Diversification — Creating a totally new product for a completely new market; it’s the most uncertain and thus the most riskiest growth strategy.
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