Small Business Financial Leverage & Timing
Knowing how and when to use financial leverage to accelerate the pace of growth for small businesses is a critical element of good financial stewardship. Importantly, knowing when to spend and how much to spend can have a major impact on the long-term sustainability of a business. Equally as important, knowing when to seek additional capital and deciding how much capital to use often puzzles small business leaders. Businesses need capital for all sorts of initiatives - including the acquisition of new products & services, the regional expansion of the business footprint, and bringing in new leadership talent.
Each of these events require the infusion of capital. Yet, timing when making these types of decisions must be well positioned. Timing must take into effect key market forces such as the cost and supply of labor, interest rate increases, and supply chain challenges. A business owner who decides to use capital to hire new operating talent when wage pressures are high and interest rates are skyrocketing may want to hold-off on that decision until market headwinds begin to recede. However, borrowing capital to expand technology that will yield operating efficiencies designed to drive down the price of goods and service would be a better use of capital during the same period.
To learn more about financial leverage and market-based timing, reach out to Finquest Financial Services at 678.784.4018 or email us at email@example.com.