By Stefania Aulicino
“I knew when I started my business it was to build a significant player in the market. Many entrepreneurs are small business people and their goals are modest. Not me: I started with a big end in mind: to be a valued partner to my clients, attract a team to help me grow to our full potential, be recognized for innovation and performance in our niche rewarded with premium prices for our unique solution, and to channel my passion to deliver solutions in an area where I am uniquely suited to contribute. In short: make a big difference in the world.That was and is my goal, but reality falls a bit short. When we began, everything was on track. We built upon our unique perspective and insights. We attracted our ideal clients and our proprietary solutions began to sell. Word of mouth and trade press followed and sales grow.
Early on we used our limited resources very carefully, balancing innovation and talent investments matched with internal resources. As we attracted more and bigger customers we had to bite the bullet. We started to seek financing to put infrastructure in place to support these larger customers. As an expert in my industry I am very comfortable with analyzing decisions related to product and service, but I was a new-be about finance.
The bank seemed like the conservative thing to do so we selected a relationship. But the bank has not been as I had hoped. The bank was willing to finance a building, or extend credit as a percentage against selected accounts receivable or inventory that met their criteria, but the bank offered no help with what I really needed—growth capital, to fuel tomorrow; the bank offered only working capital based on what I have today.
Now I am getting scared. If I want to grow and I can’t use debt from the bank that means I have to seek out investors who want equity ownership and control. I feel confronted with a terrible reality: stay small or take on equity partners who expect to have a say in the future I want to build and let others control my destiny. I’d have everything riding; my family’s security would be at risk of decisions I don’t control. What a terrible choice.”
If this is you, do you resonate with these growth stages of your company? continue reading…
