Learning how to acquire business financing and fulfill your cash requirements smoothly is the number one objective for new and established entrepreneurs. Setting up a business is one thing, successfully allowing it to grow through to its full potential another! Several factors play a crucial role in this, but what remains of the utmost importance is a proper balancing of your cash availability, cash flow, and business credit.
Preparing your business and loved ones for adversity doesn’t have to be an exercise in preventing negative outcomes alone. Launch your financial business strategy with a long-term outlook in mind. This way, you can grab opportunity whenever it arises, and you’ll remain financially secure while doing so.
How Much Risk Can Your Business Handle?
Taking risk into consideration is part of every investment, be it personal or business-wise. Threats can take many shapes, from cybersecurity, over malware, to unwanted information leaks. Establish a business risk appetite catered to your company. Define where the most sensitive points lie and protect yourself against those. Prioritizing any risks inherent to your sector and taking full preventative measures to counter them is a good first step.
But is it enough? Too many entrepreneurs are caught off guard by unknown risks hurting their investments and jeopardizing their success. These factors are often industry-specific and harder to predict. Are you expecting geopolitical issues in your main export market? Is regulatory compliance an issue in your field, and are you at the pulse of any legal changes that might occur in the future? Whatever happens, don’t panic and stay focused on business impact. By visualizing your business risk, you can face it, deal with it, and find solutions.
Financial Planning Benefits You in Several Ways
One part of mitigating risks involves having a crisis budget at hand. Setting up a low-interest business line of credit can easily help you through a rough patch. But it can also suit other needs, such as grasping opportunity when it arises. Keep full control of your credit and use it responsibly wherever you see fit! This type of funding is a clever way to remain cash-flush without taking a detrimental hit to your future.
Fighting back the economic downturn and turning that into a positive isn’t easy. Many companies though, both larger enterprises and SME’s have seen an uptick in the demand for their services and goods. The eCommerce industry for example, has taken off massively year on year.(1) This doesn’t have anything to do with luck, but with their preparedness and adaptability to take on the challenges of new market demands, both financially and logistically.
Year-over-year comparison 2019-2020, in $billions
Source: Digital Commerce 360. U.S. Commerce Department
Whatever your current risk situation, perhaps BOSS can help. BOSS stands for Business Owner’s Success System. The BOSS System is a multi-million dollar proprietary technology platform developed by LenCred, a 13-year-old FinTech Industry leader. The BOSS System offers a unique solution to start-up and early-stage companies to obtain essential funding to grow and position themselves in a constant state of readiness with capital for their business.
Let Select Capital Solutions show you how to stay ready at all times, so you don’t have to get ready when an opportunity comes your way! In our next installment of this blog post series we’ll talk more in detail about Maximizing Results By Setting Up Business Credit The Right Way.