According to TEC speaker and capital finance expert, Gordon Tunstall, most entrepreneurs make three huge mistakes when planning for growth:
- They limit their growth based on access to a common commodity — cash.
- They limit their thinking to traditional “secured” financing.
- They attempt to acquire capital in increments rather than getting all they need at once.
Determine the full extent of your capital needs and acquire the financing all at once rather than piecemeal.
“When planning for growth, most entrepreneurs ask, ‘How much capital do we have in the company and how can we best allocate it?'” explains Tunstall. “In contrast, high-growth companies ask, ‘What could we do with the business if we had all the money necessary to grow it to its full potential?'”