Author; David Hargreaves, the chief guru, principle ‘dreamer’, daddy to two little girls and the walker of the office dogs at The Growth Gurus.
Growing your Profits will require an increased amount of working capital to fund your growth.
Having insufficient working capital in your business is likely to:
✗ dramatically reduce your profits,
✗ increase your risk of failure; and
✗ creates unnecessary levels of stress.
Top Tip — Funding is not a luxury; it is absolutely critical to creating high levels of sustainable growth.
We believe that the six main methods of increasing your working capital are;
1. Your own money.
2. Your own profits.
3. Your Friends and family’s money.
4. Other People’s Money (OPM)
5. Selling your shares.
6. Free money.
Which ones you use and in what proportion you use them will depend on where you are in your business life cycle.
What do I mean?
✔︎ If you are a start up, use more of 1,2 and 3 and a little.
✔︎ If your business is 3 to 5 years old and your not growing, use 4 and 6. Don’t use 1,2,3 and 5.
Top tip — Just using your own profits will keep you poor. All of our millionaire clients avoid using their own money to grow the business because they use other peoples money. Their profits build their personal wealth.
I Hope you have gained some value here!
This article was written by David Hargreaves the chief guru, principle ‘dreamer’ and the walker of the office dogs at The Growth Gurus
About David Hargreaves
David is a seasoned and accomplished entrepreneur who’s first business was started from home and grew to a turnover of £12m before David’s Exit.
David is passionate at helping business founders to be the best they can be, to make pots of cash by serving their customers and to have a happy family life.
About The Growth Gurus
The Growth Gurus turn dreams into reality.
The Growth Gurus ensure that you build a sustainable, high growth enterprise that can be scaled whilst having fun.
We achieve this by giving you access to our network of experts in all the areas you will need, whether this is helping you to increase sales, funding to fuel your growth, team building, mind set coaching, systems development etc.
We also have access to over 300 funders many of whom would love to fuel your growth with other peoples money