Mobe Products Ideas: The most difficult thing about owning a small business has to be deciding on how and where to spend money. So many areas of your business demanding resources, so little money to spend! Many small businesses might opt for a loan, but you might not want an extra financial commitment when you are barely keeping the finances of your business together.
Without a loan and the financial boost that comes with it, the prospects of startup growth and expansion might seem very small and this could discourage your expansion endeavours. Fortunately, there are many other ways of financing your startup business for growth without adding another burden of a loan to your plate.
Mobe Products Tips to Raise Money for Your Business:
- Cut off Functions That Are Not Profitable
Evaluate your company and cut out every function that is not profitable or effective. Some parts of the business have become “must have’s” that we tend to automatically always have them even when a company doesn’t really need them, e.g. Human Resource or Payroll.
- Make Faster Decisions
Analyze and interpret data and trends quickly, then make decisions on your next move. This puts you ahead of your competitors and facilitates the implementation of new strategies by your business first.
- Utilize All Tax Credits
Find out all the tax credits you are entitled to and leverage on them. There are a lot of tax exemptions that can help you save money that many businesspeople are not aware of, e.g. resale exclusions and machinery exemptions.
- Get Grants
Like tax exemptions, there are many grants available to small businesses for growth, especially if your record shows that you are doing well. A thorough research and visit to all local business funding departments will help you find out about which grants you qualify for.
- Rent Out Your Facility
An office rearrangement can create lots of space that can be partitioned into rooms and be rented out to generate a lot of passive income. You can also rent out meeting rooms to other companies or small time entrepreneurs who need temporary space, e.g. tutors.
- Open Up Your Website for Advertising
Many small companies do not have a website yet and are always looking for easy and inexpensive ways to advertise. Allowing such companies to place advertisements will generate you a good deal of passive income, as you can advertise for several companies at a go.
This is a financing method where a business owner sells accounts receivables to a third party source to raise funding. Simply, after you receive an invoice, you sell it to someone at a discount for immediate cash.
- Issue Bonds
You can sell bonds to investors, who will only receive interest on the bond issued. Bonds are different from stock investment because you still fully own your business and the bond investors do not even participate in the decision-making process of the business.
- Preferred Stock
This is a form of equity financing where you sell shares to individuals; but unlike stock, they hold no vote on company governance and can only receive a predetermined return on their stock. Preferred stock outlines the current value of the shares and the expected value per share dividend each year.
- Common Stock
Lastly, if you don’t mind sharing, you can sell part of your company for common stock. This gives the buyers a voting share in the company. To still maintain control of your company, you can sell only a small amount of shares, and even negotiate a buyout or preference should the buyers ever decide to sell their shares.