Entrepreneurship means persevering, tackling and also making choices for more detail shlomo rechnitz. You often make decisions from your entrepreneurial heart. You see opportunities to grow and from your vision of where you want to go with your company. Growing your business requires investment. There are also risks involved. How do you ensure that your investments are less risky?
1. Put your ideas on paper
You see an opportunity to grow with your business. Investing costs money, the intention is of course to earn back your investment. What will your revenue model look like? Are your plans financially feasible? Do you want to make the investment from equity or attract financing? It is important to clearly map out all these matters for yourself and put them on paper.
2. Gather the right people around you
A good, thorough and well thought-out plan will help you make your dreams come true. Don’t be afraid to also invest in this plan by gathering the right people around you. For example, hook up with an accountant or see if you can get advice from the Chamber of Commerce .
See Also: Make good use of your working capital and make room for growth
3. Choose a financing method that suits you
If you come to the conclusion that you need financing to take the next step with your company, there are several ways to attract financing. Consider, for example, private loans through friends, family, an investor or financing through the bank.
The most important thing is that you choose a financing method that suits you. An investment always creates a degree of dependence. It is good to be aware of the participation in the course you are sailing with your company. And to what extent you can and want to keep private and business separate.
4. Choose the right financing product
An investment becomes less risky when you choose a financing product that best suits your goals. For example, a long-term loan is more suitable for a renovation of a building than a business loan. Financing your stock ? Then a business credit is a better fit, because the money in your company has a shorter turnover time. Read more about the difference between a credit and a loan .
5. Keep a good overview of your income and expenditure stream
Of course, as an entrepreneur you want to fulfill agreements and obligations. That is why it is important to keep a close eye on your liquidity forecast . With a good overview of your money flows, you know when the money will come in and you have a clear expectation when you will spend it. Make sure you know when to expect peaks and troughs in your liquidity. This way you keep control over your finances and you are less likely to be faced with surprises.