Sometimes I think we’ve been conditioned to believe that external investment is the only route to business growth.
Don’t get me wrong, fund raising at any stage of business growth can be just what the doctor ordered.
And I’m not just talking VC finance, but all forms of debt and equity funding.
Nothing comes for free and the downside of taking on debt unnecessarily – or getting the timing and terms wrong when bringing in equity partners – can prove fatal.
With that in mind, there are plenty of creative ways to supercharge growth in your business.
One is customer-funded growth. An obvious example is where you pre-sell your product or service, much like an events business, like Glastonbury does. The right kind of business model will allow you to scale without prohibitive cash flow constraints.
Another is licensing the intellectual property of others. I know this can be a minefield and potentially reduce your competitive moat – and you definitely want to avoid becoming a glorified franchisee. But the returns can be substantial, so long as you choose a reliable partner at the right stage of their business cycle – and with decent IP.
Growing by acquiring other businesses is something that’s close to my heart. There are almost always opportunities to acquire other businesses in ways that are financially realistic – to you and them. Just get the right advice.
And possibly my favourite growth route is through JVs or partnerships. I know countless businesses that are basically built on this principle. You provide access to capabilities, connections and customers they don’t have – and vice versa.
#NextLevelGrowth #ExitLaunchpad #M&A #GrowthHacking