You can’t grown your business much without incurring some new expenses. How can you best do so while covering your present costs? Entrepreneur provides some answers this month to “a common problem for businesses that need to invest in capital equipment to grow.”
Analyst Ryan Himmel has some solutions in mind for when “You know your business will grow if you purchase additional equipment to meet demand, but you simply can’t afford it because you don’t have enough cash flow.”
Most businesses in this situation should explore three options, he says:
1) Optimize revenue opportunities — increase the revenue per client.
2) Streamline costs — reducing non-essential expenses such as certain administrative and redundant costs.
3) Seek outside financing from a lender, or an equity investor such as a strategic partner.