When we lack the capital to run a business we just started, of course we think of looking for additional capital that will meet our shortcomings. The method commonly used by business people is to find people who are willing to invest in their business or take out a loan.
Finding investors is not easy because it is not easy to convince people to spend their money. Taking a loan is also not easy because it requires terms and guarantees that we don't necessarily have. So, what is the best way to grow our business without attracting investors? Is there any other way besides taking a loan? Here is the explanation.
1. Make a profit
This is a rational and best solution for growing a business without having to wait for funds from investors. Making a profit is generating new money which can be reinvested in our business so that it can grow quickly. This is a source of funds obtained from internal activities of our business rather than seeking outside funding.
Profits are excess income after deducting expenses. Maximum profits can be generated by creating a product that uses the least amount of capital and adds the largest margin to the price of capital. If we can do this, we don't need to attract investors - which will only add to our business expenses in the form of profit sharing.
2. Ask for lenient payment terms
The second best and rational solution is to ask for payment relief from raw material suppliers and/or owners of the facilities we rent. The payment relief can be in the form of an increase of payment frequency and/or an extension of payment term. The greater the frequency of payments, the smaller the expense to be issued. Meanwhile, extending our payment terms gives us additional time to turn a profit.
In addition, of course, there are many other reliefs that we might get from raw material suppliers and facility owners, as long as we have the courage to convince them that we are worthy of being trusted. Without their trust, there is not much we can expect from this second solution.
In essence, keep the trust of anyone related to your business so that you have the convenience of doing business.
To find out the no-loss business, the article below might help:
Cryptocurrency Trading is a No-Loss Business
