The ideal business scenario is that you never need to raise extra capital (cash). Your cash flow is strong, or you have sufficient savings in the business to fund your business plans. However, at times, even profitable businesses need additional capital to take advantage of various opportunities.

The best reasons to raise capital are:

Starting a business – set up costs and working capital.
Buying a business – the purchase price.
Expanding capacity – new equipment, staff, premises or location.
Expanding market demand – marketing, exporting.
Product or service development – research and testing.
The worst reason to raise capital is:

You are running out of cash…
If you are looking to source additional capital, then the best place to start is this article on your options.

Then, download the Investment Ready Guide, which will explain in more detail options such as angel funding and venture capital.

Of course, the best source of capital will always be your own.