Responsibilities of Expert Mentors for Small Business Owners

Building a business from scratch to being in a competitive state is not easy. No matter how much capital you have, you’ll still feel like you need more than what have. At the same time, you need a lot of experience and good guidance to ensure you spend your capital in the right way. This is the reason why you need to higher the services of expert mentors for small business owners.

These experts help you make important decisions about your business like; the best operating time, your targeted clients, your business growth and finance experts and the number of employees needed if any. No matter how good you are in running businesses, you will definitely need a different opinion in one thing or the other.

The impact of good financial control in a business growth

Regardless of the size of your business, business growth and finance go hand in hand. This is because; your business growth is largely determined by how well you are able to handle your finances. With the help of expert mentors for small business owners you will be able to make important decisions like;

1. Where to get finances from

There are two major ways of business financing (debt or equity). Debt financing is where you receive traditional business loans or short term loans from an institution and repay with interest. On the other hand, equity financing is when an individual, company or an institution decides to invest in your business in the form of bonds, stock or as private investors.

2. Effects of financing

The two types of financing have their own characteristics and pros and cons. And therefore you’ll need an expert mentor for small business owners to help you choose the best form of financing for your company. Although it is not always possible to get equity from financing, it is always more preferable compared to debt financing. However, if the business has good cash flow, then taking debt financing would work as well.

3. Distribution of financing

Proper finance distribution carries a lot of weight into your business growth. For your business to grow, it needs a specific balance of finance distribution. This means that the money borrowed should be used sparingly and for the right purpose. This helps in ensuring your business earns enough to repay the money borrowed and still be left with enough to run it.