Your Business Secured that Capital Injection, Now What?

Congratulations! After months of campaigning and late nights, your business has just secured that capital injection. This is a significant milestone that provides an opportunity to accelerate growth. But how should you strategically allocate this new capital?

Follow Through - If, as part of the capital raising process, you detailed how you would allocate the capital, then follow through on it. Your investor(s) has trusted you with their funds and believes in your vision. Reward their trust by following through on what you said you would do.

If you were not specific about the allocation of the capital, then consider:

Strengthening Core Operations - Invest in your core business operations and maximise market share in your area. The goal is to enhance your product or service offering and deliver more value to your customers. This could mean upgrading your technology/assets, improving your supply chain, or expanding your team.

Market Expansion - Is it time for you to expand into new markets? This could involve geographical expansion, targeting new customer segments, or even diversifying into new product lines.

Debt Reduction - You may wish to consider using some capital to reduce your business' debt. Less debt means less interest burden, which can improve your company’s financial health.

Reserve for Future Opportunities - You never know what is around the corner, challenge or opportunity. Either way, it’s always good to have some funds set aside. Having a financial cushion will give you the confidence and ability to continuing growing your business.

Additionally

Paperwork - Don't forget to update your cap table and notify ASIC.

Remember, every business, business owner and situation is unique. It’s important to make decisions that align with your business’s specific goals and circumstances. Well done on securing that capital. Onwards and upwards!