Sufficient Preparation is Crucial When Seeking Funding, Find the Edge Expert Says
Manchester (PRWEB UK) 1 July 2013 -- Miles Lloyd has called for businesses to take steps to fully prepare - and formulate coherent strategies - before applying for external finance, in a Find the Edge article published today.
He uses the post to explain why preparation is so important when looking to grow a business, and why rushing into borrowing can be a dangerous tactic.
He said: "Business growth is rarely just the product of hard work and dedication.
"It typically requires an injection of cash to get things moving – whether that’s used to make a strategic hire, invest in an important piece of technology, or simply to ensure a steady supply of working capital so you can concentrate on taking your operation to the next level.
"But before you seek funding, it’s important to be prepared – and that means being clear in your objectives by fully assessing all your obligations and opportunities."
He then explains five actions to take when preparing to borrow. These include updating the business plan, understanding exactly which direction the business needs to move in, and having a timeframe for this.
Lloyd also discusses the need to be pragmatic. He said: "I’m a firm believer that the glass is half full. But it’s better to be pragmatically pessimistic with your projections, especially if you have other shareholders.
"Seek efficiencies, but don’t economise on your ability to do the job properly. (If you’re just starting out, raising six months’ upfront costs is a good rule of thumb. And remember you need to pay yourself a living wage.)"
The article can be read in full here: http://www.findtheedge.co.uk/finance/funding-lending/checklist-for-growth-5-steps-before-funding.
Miles Lloyd is CEO of Outsauce, a recruitment finance, accounting and umbrella solutions provider. He also owns Io Consulting, and more about him can be found here: http://www.findtheedge.co.uk/expert-panelist/miles-lloyd.
Kenny Goodman, founder of Find the Edge, said: "It's natural to want to grow your business as quickly as possible, but taking a step back, and thinking about exactly what you hope to achieve with the finance can make a huge difference."
Find the Edge is a business website, which features news, views and insights from across the business world.
Kenny Goodman, Find the Edge, http://www.FindTheEdge.co.uk, 07540 368 439 0161 713 2506, [email protected]
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