During the course of your business's life cycle, there will be critical moments when you have to decide if funding is necessary to sustain or take your business to the next level. Below are some common occurrences, strategies, and financing options to consider during the different stages of your business.

Start-Up

Funding your business is one of the most important choices business owners make. How to structure and fund your business will impact the future course and direction of the business. There are many ways to finance your new business. It is important for start-up business owners to consult with your business advisors and banker on the best option(s). There are a number of resources available including small business loans, SBA-guaranteed loans, investor loans, and private equity. You will want to do your research to identify the best options for your situation.

Early Stage

During the early stage of your business, you may need access to additional funding to make major purchases for your business or to improve cash flow. For example, you may need to purchase additional materials for products before you have received payment on your goods. This scenario may create a situation where you need additional funding quickly so you are ready when unexpected (or expected) expenses occur. Depending on your need, you may be able to utilize a commercial credit card for short-term funding or you may need a revolving line of credit for long-term capital needs. Your banker can help you determine which option is best for your business. Both options will provide access to additional funds to help your business grow.

Growth

Your successful business will eventually reach the phase where operations are generally smooth, revenues are on the upswing, and you are no longer up against continual cash flow struggles. This point in your cycle is often the juncture where you need to consider if and how you want to grow. Do you need more people? Do you need to automate? Should you make investments in infrastructure in order to scale? Do you need to invest in technology to stay ahead of the competition? Are you considering expanding into new products or markets? These initiatives will likely require large investments. Building a network of trusted advisors can be valuable and having a team of experts to provide advice might help you identify best practices and avoid pitfalls. Your advisory team may include a financial advisor, legal expert, insurance agent, and a knowledgeable banker. For example, you may need additional funding to expand your business. A trusted banker will help you identify credit options early in your business so you can take on opportunities as they arise.

Maturity

As a business owner, stepping away from your business can be one of the hardest and most rewarding times of your life. Your success is a result of your hard work and tireless effort. You have a lot to be proud of! You may have succeeded in creating jobs, developing new products or services, supporting community organizations, and contributing to the local and national economy. Most importantly, your hard work and dedication likely built a comfortable lifestyle for yourself and your family. There are many exit alternatives to consider including Employee Stock Ownership Plans (ESOP), transition to a family member or management team, or sale to a third party. Understanding the alternatives and selecting the option that is best for you and your business will result in a smooth transition.

Achieving and maintaining a high level of success in the business world requires partners who understand the unique challenges you will experience. At CrossFirst Bank, you will find the business acumen you need. Our Bank was founded by, and continues to be led by, trusted leaders in the business community. Our service begins with expertise and extends into establishing strong and reliable relationships that become the foundation for success.

If you are a business owner who wants to discuss financing options, CrossFirst Bank has a dedicated team of experienced bankers available to help you. Connect with one of our local bankers today.