Some founders achieve success without the need for investors…
They bootstrap their business and grow their business organically.
That growth may continue at pace. Or, the growth potential becomes constrained due to limited resources. At the other extreme, growth reverses and the business takes on debt to survive. I see each of these scenarios play out all the time.
The ideal scenario (of course) is to have a profitable and growing business, unburdened by the wrong sort of debt. And what else? A business with the right systems, people and processes in place, ready for growth capital and set to scale.
So when is the pivotal moment to seek investment or take on strategic partners?
To me, the obvious answer is ‘from a position of strength’.
It’s when the business has strong foundations and solid growth… it’s when you want to capture market share, enter new territories, launch new services or take on bigger clients.
Because, as a business owner, you want to use investment as a springboard for growth and a successful future exit, not as a survival mechanism.
But here’s the harsh reality – the medicine required to fix the problems in a struggling business, is almost always taken too late by the owners.
Which ultimately means the ideal moment to take on growth capital and plan a successful exit is only getting further away…
#SME #Business #ExitLaunchpad #MergersAndAcquisitions #ScaleToExit