In case you missed Thursday’s webinar, moderator Ami Kassar (CEO, MultiFunding) discussed Innovative Ways to Fund Your Business Growth with Red Caffeine CEO Kathy Steele and a roundtable of industry leaders, including Lilli Zakarija (President, EdgeOne Medical), Stephen Olds (CEO, Exegistics), and Stacey Bales (President, Bales Metal Surface Solutions). Check out the video recording to see three options for investing appropriately in your business with either cash flow, an SBA loan, or private equity in order to reach your three-year goals.
Here's what we learned:
- Many companies use the Entrepreneurial Operating System (EOS) in order to set a 10-year vision, a 3-year plan, and a 1-year operating plan.
- Mid-market companies reinvest anywhere from 8%-50% of their net income back into their businesses.
- Significant investments should include a timeline in which you check in on their performance throughout the year.
- Some investment returns are easily quantifiable–others won’t have definitive ROI. And not all investments will be winners.
- Investments in growth may include software, hiring and training personnel, equipment, marketing, or operating efficiency.
- There are multiple growth scenarios that take advantage of different types of risk, levels of investment, rate of return, stage of life, and goals within a Velocity Matrix.
- Taking on debt can be less risky with a defined model in place.
Find Ami’s presentation deck, including the Velocity Matrix here.