While reviving a stagnant or declining business is certainly challenging, growing a business to the next level brings many challenges of its own, especially with regards to financing Growth requires funding for staff, inventory, sales and marketing. CEOs and CFOs who don’t carefully plan for the impact that growth can have on their finances can literally grow their companies out of business.
When contemplating growth initiatives, the main question facing executives is where the cash will come from. There are only two sources: owner’s equity (in the form of personal savings or retained earnings) or outside financing, whether debt or equity.
…looks at the pros and cons of two types of outside financing: debt and equity. Also reviewed are three critical evaluation criteria bankers will use to determine if they will lend money.
With some signs indicating the economy be improving, many Los Angeles and Southern California CEOs and CFOs are thinking about how they can shift their companies back into a growth gear. As you plan your growth strategies for the new year, be sure to factor in the effects that growth may have on your company’s finances. An outsourced CFO services provider can help you plan for the financial impact of growth to help make sure that it doesn’t result in unintended—and dangerous—financial consequences.