4 Areas Of Business You Need To Fund

by Alex Feldman

December 20, 2017

Raising money for your business isn’t always easy, but it’s necessary. You need capital to set your foundation and get you up and running. If you’re considering starting a business, then think about all the areas you’re going to need to contribute money to.  

You’ll want to spread the money out and not use it all in one place; you’ll need to avoid under or overfunding certain sectors. The last mistake you want to make is having the hard earned capital you raised go to waste. You want to show people that you know what you’re doing and are able to manage and grow a company.

Outsourcing IT and Security

Nowadays, hiring outside work and remote workers is becoming the norm. Although you’ll want to invest in a great in-house workforce, you can get help by paying to outsource a lot of the responsibilities, especially in relation to your information technology and security needs. Companies like Skyhigh Networks offer CASB software that safely enable organizations to outsource their IT software and hardware needs to dedicated cloud service providers without compromising their security and compliance requirements.

Operating Expenses

You’re going to need money for rent, payroll, sales commissions and more. Operating expenses are important for keeping the daily activities running smoothly. Set aside capital to help you manage this part of the business without any concerns for missing payments. Without this funding, your normal business operations can’t go on and you won’t make it. Get off to a good start by confirming you’re prepared to make payments associated with this category.

Working Capital

It typically takes a business more money than they’re making to expand. Growth potential should be accounted for early on since that’s the direction most companies want to head anyway. For example, needing larger inventories calls for working capital if you want to get the job done. Account for this expansion early and understand what money you’re going to need to continue working on a larger scale. It’s also a great measure to see if a company is financially healthy.

Marketing & PR

Remember that if no one knows about your business, it’s going to be difficult to make any profits. Use your money to invest in a talented marketing and PR team or person who can help you better understand where to use your money and what strategies will work best. Launching a new product, creating buzz and having a social media presence all take marketing efforts. You want to do it right and not forget about it or approach it with a lazy attitude. It takes time, and what you put out there is the face of the company, so it’s important to not be sloppy when it comes to marketing your business. After all, this is your brand, and to have a good brand you’re increasing your visibility positively.

You have to think about money when you’re starting a business. There’s no way around it and it’s necessary for launching a healthy company. These are four areas of business you need to fund.