Creating a Valuable Business

7. Financing

7.1 Ensure that you have adequate financial resources.

• Make sure that working capital limitations do not restrict your growth.

7.2 Build your financial status.

• Use the right mix of debt and equity to make the business creditworthy.
• Behave in a creditworthy fashion.Pay lenders and other creditors on time.
• Make sure investors and lenders are kept informed, and are given advance warning of any likely disappointments or problems.

7.3 Protect yourself with the right borrowings. For example:

• Set up borrowing facilities in case of need.
• Borrow at fixed rates.

7.4 Work to minimise debt.

• Ensure that as a long-term strategy you strive to keep your costs down.