Why Do We Need Money?1:16 with Pasan Premaratne
Acquiring funding for your growing company can come about for a variety of reasons. Let's look at why we need money and the different options we have for sourcing it.
[MUSIC] 0:00 I've done a fair bit of marketing and a good amount of sales, but 0:04 revenue isn't growing as fast as I'd like it to. 0:08 I need to increase my marketing activities or 0:11 hire a few more sales people, but I can't afford to do that right now. 0:14 Oftentimes, you may find yourself in a scenario like this, 0:17 where you are making money as a company and bringing in profit. 0:21 But you know that you need to act quick and 0:24 capture a larger share of the market before your competitors do. 0:27 This is where external financing comes in. 0:31 Taking money from outside sources can provide you with the extra cash you 0:33 need to hire a larger workforce. 0:37 Or provide a needed cash buffer so 0:40 you can focus on activities that increase your customer base, while not having to 0:42 worry too much about higher expenses eating into your bottom line. 0:46 Getting external money can be overwhelming, however. 0:50 You have a few different choices of how you can do it, 0:53 and each one is substantially different from the other in terms of process, 0:56 advantages and disadvantages. 1:00 It is important to know which type of funding process best benefits your 1:02 company, and how to go about obtaining it. 1:06 We're going to cover debt financing, equity financing and 1:09 a little bit of crowd funding. 1:13 Let's get started. 1:15
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