Lessons
How To Move Forward and Make Money with Susan Schreter
How To Move Forward and Make Money with Susan Schreter
1Course Introduction
02:46 2Improve Your Business Mindset
08:36 3How to Fund Business Growth
07:20 4The Dangers of Need-It-Now Funding
05:05 5Steps to Build Your Plan B
08:00 6Create Value in Your Business
07:18Lesson Info
How to Fund Business Growth
do you need money for your business? You think that's the answer to all your problems, don't you? If I only had a little bit more money, everything will be great. Let's talk about where you get money for your business. It's surprising how many people don't really know. But there are four key areas where you can raise capital to fund business growth and I'm going to get to that in a second. But I want to pause on what I just said, fund your business growth. You could also call it fund your business advancement notice. I didn't say, let's just fund payroll. Let's just fund being in business another month or two months when you're already in quicksand. Don't go out to a lender or an investor. If you're not funding your advancement, don't take money out of your checking account. If you're not certain what you're spending the money on is really going to advance your business. You don't want to pour more money into a business to have it go down the drain because guess who's losing out more? ...
You stay away. Find another way. But sometimes there are legitimate businesses business ideas, your plan B, that will require some extra capital to advance that business. And I'm all for it. I'm the biggest champion for helping businesses raise money for their business. But let's go over the basics and you're going to find so much more in the course funding business growth. But I just want to highlight the four sources of funding for your business. It starts number one with you or your spouse or your family. You can invest your savings into your business And the moment you invest any amount of savings into your business, guess what? You own? 100% of that business now? I'm a fan. Despite what you may think I prefer, people invest less in their business. Why? Because I want to return a positive return on that investment And it's a lot easier to double or triple the value of $5,000 investment than a $20,000 investment. And I am the voice of caution to anyone over the age of 40 who is too eager to dip into retirement savings for one case or take on a lot of debt to invest in a business. Let's slow down a bit and let's make sure whatever you invest in your business is going to work for you, where you will make money. So when you pull money away from savings, be it $1,000, You're taking that from your s. p. Here's something to think about. Your business has to grow in value More. Would you want it? It's a smart investment. If it grows in value more than what the s. p. delivers right, The S. And P. 500 typically over a 10 year period may produce 10% a year in seven out of 10 of those years. So if that's true Your business, if you pull $5,000 out of savings, you need your business value to double in every seven years. If it's not keep your money in the savings account that's successful, thinking that should be part of your plan B. So what's the second source of funding for your business? Let's call it debt. You're borrowing money, it could be from a bank or any other source. When you borrow money, you have to pay it back. And the interest you pay is the time value of your money. So there is a cost to borrowing money. What is the 3rd source of funding for your business? And you can learn all about this in the course funding your business. It's raising money raising equity from investors. Now, guess what? Investors can be a good thing or a bad thing, investors will expect a positive return on their capital, just like you should. Now, where I encourage business owners to think Gee, how can I double or triple the value of my personal savings, investors are going to expect 5 to 10 times their money back. So they are interested in investing in businesses with high growth potential. Now, if those numbers scare you, they don't need to because you'd be surprised at how businesses on Main Street can be very profitable. Companies to invest in A restaurant can become two restaurants for restaurants, 10 restaurants, you'd be surprised at. An accounting firm can grow in value in any number of ways. Service businesses of all kinds can be super successful in America whatever you need, you have to approach how you fund your business as so important to a key decision in how you grow your business. So here are the four your personal savings, borrowing money, finding investors. But now here's my favorite. The 4th Source of Capital for Your Business is the profitable cash flow that your own company kicks off from selling profitable goods and services to a growing number of customers. It is the safest way to fund your business. It's the best way for you to keep control of your business, and it's the best way for americans to build their net worth. Did you know that you're more likely to become a millionaire from your own business than ever winning the lottery? The statistics are on your side. So pay attention to what you can achieve, especially as you dive into our wonderful workshops here. Pay attention to what produces a positive return on your investing cash and your time you're worth it. You can build and fund the business of your dreams.
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