All large corporations were once small, then medium-sized enterprises that managed to cross a significant threshold that catapulted them into a substantial organisation. While not all small businesses will reach this stratospheric level, learning to grow your business to cover expenses, pay employees, pay yourself and meet customers’ needs is a highly sought-after sweet spot.
Scaling is a pivotal point in any small business’ journey. Scaling is when a business needs to expand to meet the growing needs of the business. This can take the form of employing more staff, purchasing, introducing new products and services, or developing infrastructure, systems and processes that will support improved servicing of client needs, potentially with a reduced effort from staff.
No matter what form your scaling takes, it will require a significant injection of capital that isn’t usually readily available to the business. Some businesses rely on cash flow to support scaling; however, the payment and repayment cycle is slow, making it difficult to rely solely on cash flow alone.
Small businesses can use various channels to acquire the funds they need to scale sustainably. In addition to crowdfunding, lending facilities, and venture capitals, a standard scaling method is with a funding partner.
What is a funding partner?
A funding partner is a business or entity that enters into a strategic partnership with a small business to provide the necessary funding to propel growth. Although primarily there to invest finances, small businesses usually seek a funding partner whose vision, ethics, and values align with their own. To really support their growth journey and share in their success.
Additionally, funding partners will automatically provide advice to guide the decision of the small business. Hence, they garner the maximum returns from the investment while scaling sustainably.
How to scale with the right funding partner?
A small business seeking a funding partner may become overwhelmed with the amount and types of funding partners that could potentially support their business.
Like all partnerships in life, your funding partner and you must be on the same wavelength within the same shared goals and aspirations for your business. While those can be any number of things, below are a few factors that can be considered the rule of thumb when finding the right funding partner to scale with.
- Familiarity with your product or service: The ideal funding partner will be just as passionate about your product as you are. They will have already been a supporter or have taken the time to familiarise themselves thoroughly with your suite of services or product offerings. To successfully onboard a funding partner for scaling, you must choose the right organisation. They must believe in the potential of your product and can help you strategise to take your business to the next level.
- A funding partner familiar with your target market: Many small businesses lack the resources to conduct extensive target market research and testing to formulate a robust marketing plan. A funding partner who aids your scaling process brings a wealth of knowledge about your target audience and initiatives on tapping into it. Such knowledge includes potential competitors, the market’s gaps, the customer’s behaviour, and other market-related facts.
- A funding partner is in it for the long run: A funding and scaling partner is a long-term relationship committed and dedicated to long-term goals. They must be equally invested in the company’s future as the founders.
As you grow your business find a partner who is committed, invested and dedicated to your overall success, mission, vision and values.
