Questions

I desperately need to expand my business to keep up with demand for my product!

I have been in business selling a "niche" custom product for many years and now am overwhelmed with demand for my product since putting a website online yet I cannot get any REAL, ACTUAL help or funding to expand operations no matter where I turn. What should I do or where or how can I get the REAL help I need? I have another product designed and ready to be marketed which likely will be even bigger.

3answers

I don't think there is a more beautiful feeling than that (on a business perspective).

So there are several strategies you can do take to grow your business without venture capital.

First you need to understand the problem you have: working capital (cash flow). The fastest you grow the more you need cash. (Uber is the perfect example today)
Before implementing any strategy please understand the concept and its implications: cycle of your sales, payment cycle, inventory cycle, etc with this said, my strategies tips:

Factoring: sell of receivables or invoices at a discount. You can "sell" you rights to collect the money to make your payment cycle shorter and be able to reinvest that moeny faster

In advance payment: just literally charge X days in advance so you can make shorter the production cycle or inventory cycle and ship on time, plus growing faster re investing until the next order

Bank: so this guys have several products for this situations: 30 days loan that it automatically renews, "revolver" loan where if you need more you just take it as a line of credit and its decided in small loans each with a specific merchandising as warranty, if you are shipping out of the country you can use and discount an LC, etc etc

There are others that are more risky but I think you can start by analyzing this three and see how they apply to your specific case

Cheers!


Answered 5 years ago

Well this sounds like a positive problem to have! Being overwhelmed with demand! One of the most challenging aspects of any business is how to grow it smoothly. Maybe funding isn't your answer right now. I would make an honest assessment of your current ability to fulfill orders and grow at your own pace.


Answered 5 years ago

It would seem this is a "good problem" to be having and that an intelligent investor would see value in working with you. I ask myself if you are properly presenting your data or if you are looking in the wrong places for funding.

It is a little hard to give very specific advice without more detail. Feel free to contact me if you want ask some specific questions.


Answered 5 years ago

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