Why do you need finance for your business?

Discussion in 'Growing and Managing a Business' started by stepheny, Jan 20, 2010.

  1. stepheny

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    Jan 19, 2010
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    When looking to source additional finance to expand your small business, it’s important to identify why you need the additional funds.
    Business finance is often used to invest in capital or acquire new assets that will enable your business achieve your business and profit objectives.

    Things to consider when identifying the purpose of business finance:

    * Do I need additional funds to increase the production or service capacity of my business.
    e.g. By purchase capital items such as equipment, buildings, machinery or motor vehicles.

    * Do I need additional funds to fulfil an increased demand for my products and/or services.
    e.g. by increasing trading stock, supplies or staff?

    * Do I need additional funds to expand distribution or develop new markets.
    e.g. By developing an e-commerce website or hiring new business development and sales staff.

    * Do I need additional funds for research and development.
    e.g. To market research, develop and test a new product line.

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