Scaling Up: Securing Working Capital

“Makarand, I am all set for the next jump. I am planning to scale my business to the next level. My sales team has already geared up to make more calls.” Raj was very excited.

“That’s great news. Tell me your plans, I am all ears.” It was time for the quarterly review. Everyone else was busy talking about how great the last quarter was. Raj was a star, who would always focus on the next set of goals.

• We have found a new pain point which we can address for our existing customers, which also means we can talk to more prospects.

• The delivery team is gearing up to build a potential solution. They are confident of building it within the next three months.

• We have opened a few more positions in customer success and support teams.

• Our existing processes and software systems have spare capacity, so that is not a problem at all.

“Fantastic. For all of the above you are going to need additional working capital. Have you estimated for that? How are you going to provision that?”

Business has to scale like a blooming flower. Every aspect of the business has to scale equally for an effective outcome. This requires extra money. For orderly growth, the working capital is provided by using the reserves. However when you plan for extra growth you have to plan for it.

Since Raj was a star player, he had a ready answer.

How would you provide for the capital during next growth phase?