Funding the Expansion of Your Creative Business

Posted by Super User
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on Tuesday, 22 April 2014 in Blog Posts

money smallI’ve learned over the years that the excitement of starting or expanding a creative business is often upstaged by the entrepreneur’s anxiety over seeking financing or investment.  Let’s face the fact that with us creative types, sometimes the electives we took in school were more likely to have covered the difference between syncopation and polyrhythm than the difference between debt and equity.

Any entrepreneur should take the time to understand the different ways to fund their business, and even though there may be a steeper learning curve for a creative businessperson versus an investment banker, taking the time to develop a good understanding of your funding options is very important.

The good news is that many of the practices you’ve followed to hone your craft can be put to good use when considering your financing options when expanding your business.  For example:

1.Be Prepared

“All things are ready, if our mind be so.”
- William Shakespeare, Henry V, Act 4, Scene 3

Take the time to have an analysis done of your new business, or your planned business expansion, to best understand exactly the financial resources your plans will require.  Learn about your various options for raising funds, as well as their positives and negatives.

2.Know Your Audience

Should you decide to approach an outside source for funding, or if you engage other professional assistance, you’ll efforts will likely be better respected if you demonstrate an understanding of working with those outside of your industry.  For instance, dress and act in a businesslike manner when meeting with a bank manager, or be sure to be succinct and to the point when speaking with an attorney (especially if he or she is charging by the quarter hour).

3.Head the Reviews

When managing your expansion, your “reviews” are the key measurements of your business, and in this case, your reviews are not found in the Sunday Arts Section, but instead in the key metrics of your business you should be following.  At every point throughout the growth of your business, compare your actual results to the plan you had before your expansion.  Also, be sure not to measure merely income, but all parts of your plan.

Any investment in time you make to better understand your funding options prior to business expansion will be time well spent.  The alternatives, such as avoiding expansion because of fear of the unknown, or not funding your expansion with the solutions most suitable to you, can result in frustration and disappointment, at the very least.

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