Growing a business or startup can be very challenging especially in the matter of financial setting and stability. There are many entrepreneurs who have already been struggling even from the start to earn sufficient fund to grow their business. There are many alternatives entrepreneurs can choose to fund their business such as use bank loans. However, sometimes it causes another problem in the future especially when the business doesn’t do so well. There are also entrepreneurs who use their own resources including self-fund. Most small business starts their journey by self-funding. You might be one of them who can become successful if you know how to maximize it.
Growing business using self-funding strategies
According to some researches and studies, entrepreneurs who use their own strategies are most likely to be stronger and more dynamic. Thus, their business to grow successfully is higher than those who only rely on bank loans. However, self-funding still needs strategies because it can effect negatively to the venture growth of your business if you do it the wrong way.
In self-funding strategies, partnership plays key role to the effectiveness. Resources sharing can help you minimize possible downside from extreme self-funding. It is even more effective when you try cost minimization strategies to he partnership. Building strategic partnership will open more opportunities while suppressing possible risks. Instead spending money on expensive tools, you can check your network to help funding your business. For example, you can ask your friend to lend you a facility you need to grow your business. In return, you can pay them for a fee or help them to accomplish their tasks.
Develop strong pre-sales capabilities to be in high performance. You can do it by reaching out to your customers and presell your product. Preselling is not new strategies in business. It is not only effective to be applied to new business but also to the already established ones. It can help you get the right signals of the people’s interests in your upcoming products or services. Not to mention that you will earn money you can use to develop your products or services. It’s like killing two birds with one stone.
Another self-funding strategy you can use is by convincing your customers to commit to your brand. Well, this is very challenging. You can also do it by personalizing the contract so that you can also overcome the presale objections. You may include some service periods that benefits your customers. This is very challenging especially when you don’t have proper resources. Preselling itself is part of the strategies that greatly to the product development. Therefore, it is something you cannot just take lightly. Meanwhile, seeking customer’s commitment before developing your product or service is effective in minimizing the risks.
In self-funding strategies, it is also important to maximize human capital. You can also shorten the development cycle to cut down unnecessary costs, build in response to demand, work with a mentor, etc. Those are effective to help you grow your business successfully.