Free Microsoft Office XP Receive a FREE 30-day trial including Microsoft Outlook 2000 and Microsoft Office XP including Word, Excel and Powerpoint. Use this tool to determine whether bringing in partners or outside investors is appropriate, the methods to use toward achieving this goal, and the problems likely to be faced in the process. You can obtain specific advice from your lawyer, accountant, banker or other financial advisor. How To Interest Professional Investors Investor Expectations and Strategic Alliance 1. Once a business has made the decision to expand, the next step is to determine how to finance the expansion.
Some firms produce sufficient cash and cash flow to finance their plans out of operations.
However, when a company is not in that position, management must find sufficient outside financing to make the proposal a success. There are many options, but, ultimately, the company must decide whether to use equity or debt to expand. A company can obtain debt financing from both traditional and non-traditional sources, such as banks, commercial loan companies, factors, venture capital firms or individuals. Many venture capital firms prefer hybrid securities with features of both debt and equity. As an alternative to financing the expansion, a company can form a partnership or strategic alliance with an existing company in the area in which it intends to expand.