There are many ways to fund growth. Just ask Vusi Thembekwayo, founder of Motiv8, who has funded his business’s growth by tapping into the wallets of his clients.
Have a great relationship with your clients. If they know you operate with integrity, they’ll be far more willing to listen to your pitch for funding.
Ensure it’s a win-win situation. In Thembekwayo‘s case, the business did high-level strategic consulting for its clients, so it was in the clients’ best interests for Motiv8 to grow and prosper.
Investing in Motiv8’s growth was akin to investing in their own growth.
Put a firm funding contract in place. Thembekwayo put up a stockbroking account worth R600 000 as collateral and negotiated terms of conditions that were clean and interest free. However, as he was being funded by clients, it was important to ensure all parties were covered and in agreement.
Business growth is great — but you don’t want to alienate your clients; they’re even more vital to your overall success than funding.