Growing businesses often require access to funds in order to meet growth objectives. You will most likely need additional financial resources to introduce new products or services, enter new markets, expand facilities, purchase assets, and/or hire staff to meet growing demand. As your business increases, so might your overheads. Operating costs will increase and your working capital requirement will grow.
Obtaining financing for your growing business may be easier than during the startup phase depending on your growth strategies and objectives. Your company has demonstrated success and has financial statements to prove it. Your ability to find financing may depend on:
- your objectives
- your past performance
- the type of business you are operating
- the strength of your business plan, and
- your ability to pitch your business to potential funders and/or investors.
You will need a comprehensive business plan to communicate your growth targets, outline your previous successes and clearly articulate the need for funds.
Financing Available to Growing Businesses
Similar to new businesses (see Financing page in the Starting A Business section), potential sources of funds for growing businesses include:
- Personal assets
- Love money
- Debt Financing
- Angel Investors
- Venture Capitalists
Additional sources of funds can include
- Bootstrapping – finding means within the company to access additional funds such as reducing costs and expenses, selling assets no longer needed, negotiating bulk discounts, etc.
- Tax Breaks, Incentives and other programs – take advantage of programs offered by the Federal and/or Provincial Governments such as hiring subsidies, training and development subsidies, Scientific Research and Experimental Development Credits, export development programs. Visit the Government Grants and Financing section of the Canada Business website to view programs and determine your eligibility.
Accessing equity financing from Canada Business Network
Article on pitching to Angel Investors from Canada Business Network
Perfecting Your Pitch from Garage Technology Ventures