How are struggling businesses saving their brand in 2018?
Seeing that the business concept you have invested money, time and effort in is no longer going in the right direction is certainly not a pleasant thing for a driven entrepreneur. However, often companies can face challenges that prevent them from reaching the desired level of success, and when the future doesn’t seem bright, resorting to alternatives becomes essential. If you are currently finding yourself in a similar situation, and you fear a potential enterprise sink, seeking a solution in an optimal period of time is advised.
In 2018, it seems that more failing companies are analyzing other alternatives, instead of accepting the status of their brand, and some have managed to turn the tables around and bring their brand in a new light. The main strategy that has been circulating around this year seems to be a collaboration with an equity partner. Equity investments have in fact transformed businesses on the verge of bankruptcy into success brands even to a global level. Because other forms of funding might be inaccessible or inconvenient for the specifics of your situation, directing your focus towards an alternative investment firm and requesting their support might be the idea that finally saves your dying business. Here are some things you need to know on the matter, which might help you understand the popularity of this option among enterprises in 2018 and why this is a strategy that needs your consideration:
photo/ Wokandapix
The pros of private equity
Because resorting to alternative private investments is not an easy choice to make, you need to be fully aware of the advantages brought to you by this decision. There are a few strong points that are linked to private equity and after understanding them properly, taking further steps on the matter will be easier for you.
- Access to appealing funding opportunities
The most obvious aspect that needs your consideration is the capital you will have the opportunity to obtain. Traditional methods of funding, as loans, can come with more complications than your enterprises is able to handle, while the solutions equity investors bring you are far more convenient and at easy reach. In order to keep your business going, you might currently require access to large amounts of money, and gathering these resources in any other way might not be possible at the moment. After assessing your situation and if they see potential in your brand, the right equity firm will stand at your disposal with exactly the numbers you might be seeking. After a thorough research, you will discover that equity investments are the most promising, financially wise, offering dying businesses the largest monetary support. Amounts can surpass millions of dollars, depending on situation.
- Active and constant involvement
Besides the actual financing obtained, often, to strengthen a brand, further actions are demanded. You might have the money necessary to invest in the further expansion of our business, but if you don’t follow the right course of action, and the changes implemented aren’t wise ones, the money spent will be wasted. As you will be able to notice from the example of XIO Group, equity firms do more than just bring capital, but participate in the consolidation of the businesses they invest in, prioritizing active and constant involvement. Every aspect of your business concept will be re-evaluated by professionals, and a maximization the potential and value of your company will be attempted. Thus, major improvements can be obtained, which might bring you a higher success boost than you have dreamed of.
- High returns under your management
Partnering with an equity investor doesn’t mean you are stepping aside and letting someone else take over your brand, you are only getting the support you need to maximize your effort and actually see results. While your company will in fact remain under your direct management, the equity firm will help you increase your profits. Your returns can reach even a 20 percent increase, if the collaboration is as successful as it has been for other businesses in 2018.
Selecting a private equity partner
While the benefits of receiving support form an equity firm can’t be denied, in order for your company actually access them, and for your collaboration to bring you the productive, beneficial outcomes expected, it’s also highly important to choose your partner with care. Despite the increasing number of equity investors, not all of the teams you will come across would make a good fit for you, so researching some relevant factors first is recommended.
- Available capital
- References – a private investment firm that has already helped other companies give new life to their business concept will present you with at least a few references that will help you form a clear impression of what they have to offer. Contacting a few enterprises the said firm has worked with over the last few years and seeing how they have handled both good time and downturns will help you make a reliable decision.
- Beyond capital – what can they provide you with? Besides the actually financial support granted, you should know what other things the equity partner can offer you, in order for your collaboration to be as productive as possible. Further business development ideas, team recruitment, future strategic planning – you should be seeking appealing value added tools besides the actual financial resources, because these can be essential for saving your brand
When your business’ profitability doesn’t seem to longer reach a reasonable level at the end of each month, fearing a potential bankruptcy or brand closure might be one of your biggest concerns. Because often, having the resources necessary to make a positive change in the way your company is functioning in a competitive market isn’t accessible, seeking another solution can be essential. Follow the example of entrepreneurs who have managed to turn things in their favor and consider what was mentioned in the information above. Failing to take action at an appropriate time could mean ending your role in the business world, so take the necessary steps as soon as you notice your enterprise has started to sink.
Author: Cynthia Madison
