Why You Need Some Extra Cash To Grow Your Business

Lots of businesses grow very slowly. Or don’t grow at all. They do the same as they did last year, maybe producing a nice little income that they’ve got used to. I’m not really interested in those businesses, even though they’re probably doing lovely things.

The businesses I am interested in

I’m interested in the businesses who want to expand and grow. The people who are ambitious, who want to do new things, the business owners who want to see a real difference in their company, and the people who want to make some real money for a change.

These are the people I work with at the Joy of Business.

They’re not power mad, money grabbing uber-capitalists; they’re business owners just like you, and they have taken a decision to have a “grown up” business and want to create something bigger and better than they have at the moment.

Often, but not always, you need some extra cash to grow your business. You might need to employ someone else to do some or all of the work while you concentrate on a new area of the business or spend your time on sales and marketing. So you need some extra money to make sure you can pay that person.

Maybe you need to rebrand the business, and start taking your marketing seriously. You need to commission a new look, a website which attracts customers, and some copy which explains why someone should buy from you.

Sometimes you can see a very profitable potential area of your business which you’re not currently making the most of. You need to spend some cash to develop something new, which is going to be your killer app – the one that will revolutionise your business.

I see lots of businesses where the business owners have seen an opportunity, but haven’t had the time to develop this.

All of these situations boil down to the fact that you don’t have any surplus in the business. Either you don’t have the cash to commission a new website, or you’re so busy chasing the jobs which are going to pay the bills right now that you don’t have time to do the things which are going to pay off your mortgage in 3 years time.

How to lose half a million quid

I worked with a service business client 5 years ago.

They’d identified a software product they could make which I guessed would sell about 100k per year, if not more. It was hot. They’d done about 80% of the coding, but it needed finishing off.

At every meeting, I asked them how the product development was coming along. Every time, the reply was that they hadn’t had time to work on it, because their software developer was doing client work. I bumped into the director a few weeks ago and he told me that they were finally almost ready to launch the product.

I was happy for him, but thought of the money they’d lost in the meantime. 5 years at 100k pa, they’d lost half a million, most of which would have been pure profit.

And then I Googled the type of product, and saw at least 10 different competitors, none of whom had been there when they had first thought of this product. So now they’re competing with all these other companies, and they’ve sacrificed about .5m of income. They probably made about 30k on the client work their developer was doing.

Don’t let this happen to you

Don’t let this happen to you. If you have a plan, or even just the desire to grow your business, and the lack of cash is holding you back, you can find the cash, or the time.

Maybe we should have a chat about just how you do that, and how to get your new idea going…