chapter 9


Since running a successful business means staying ahead of the curve, here's what you should consider as you choose your next big move.

Is your company in it for the long haul? We hope so. Below, we'll explain ways that you can position your company in a secure spot for its future and growth.

Ongoing Funding

One of the key components in securing your company's future and accelerating its growth is funding. You may have already raised a good amount of money during the first phase of your business. But by now, you're no longer starting a business; you're running one. If you're doing fairly well, you might be looking for more financing to transform those exciting ideas into reality.

If you don't receive enough funding from one source, you can always look for other methods and piece them all together to get the amount your business needs. One of the most easily overlooked sources of funding is yourself. You can dip into your savings account, apply for a zero-interest credit card, or leverage your personal assets—just be sure to keep your business bank accounts and credit lines separate from your personal accounts.

If it is not appealing or even feasible to go the personal financing route, consider taking a loan from a bank instead. From microloans (hundreds of dollars) to major loans (six figures), these loans allow you to open a line of credit where you don't start paying interest until you reach your maximum. If you already have a relationship with your bank or can provide proof of financial responsibility, it may be much easier to get approved for a loan.

If you're having trouble getting a loan through a bank, you can go through the Small Business Administration (SBA). The organization itself does not make loans. Instead, it makes a guarantee to the lender that a loan will be repaid. If you have trouble repaying the amount, taxpayer funds will be used to repay the funds to the lender. Since it reduces the risk to the lender, it's much easier to secure a loan this way. However, in the event of a default (failure to pay), you are still responsible for repaying your full debt.


You and your business partner(s) may have put in your collective blood, sweat, and tears to build a company from the ground up, but what happens if they decide to unexpectedly retire early? Or even worse, what happens when they pass away or become disabled? The answers to these questions should be carefully outlined in your Partnership Agreement or in a separate Buy-Sell Agreement to secure the future of your company.

In layman's terms, a Buy-Sell Agreement is like a premarital agreement between business owners. Just as your estate plan can outline how your family will be taken care of after you're gone, a Buy-Sell Agreement, makes sure that your company is left in good hands. The agreement should address what happens in the event of a buyout, who can buy shares of the business, and the cost of each share.


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