As a new entrepreneur, should you focus on growing your business or making a profit? It’s a tough call for many start-up owners – and it’s a subject that The Guardian has recently set out to get some advice on.
Fantastic Services CEO and Co-Founder Rune Sovndahl was one of those consulted for the paper’s piece. So what did Rune have to say when it came to advising for new entrepreneurs?
The Guardian has over 125 million monthly unique readers, so it’s a big audience who are getting the fruits of the combined wisdom of Rune and the other consulted entrepreneurs.
Some of the entrepreneurs interviewed include Stefano Meifreni of Eggcelerate, the start-up and small business advisory firm, Rachel Roberts of Spotty Dog Communications, and Glen Manchester of Thunderhead, the software company. All in all, it’s a solid group with voices from several industry sectors.
So what did they have to say about whether a new business should put its eggs in the basket of growth, or the basket of profit?
Growth or Profit – What Should a New Business Prioritise?
Striking a balance seems to be the keynote of most of the interviewee’s responses. Some finer points on the subject:
- Re-investment of profit – several entrepreneurs, including Rune, highlighted the ability and willingness to re-invest profits to grow a business as being vital to success.
- Self-funding – Rune and many of the other entrepreneurs are big believers in self-funding rather than venture capital. By relying on venture capital you can focus too much on funding rounds, have to pay dividends and even sacrifice some measure of control.
But that’s far from all of the ground covered by the article! If you’re looking for funding tips for entrepreneurs, you won’t go far wrong if you choose to start here.
Get More Tips for Entrepreneurs
If you’re a new entrepreneur, or considering becoming one, it’s well worth heading over to The Guardian and reading the full “Should I invest in growth or focus on profit?” article for yourself. Simply follow the link to do so.
You can also get more general business news, advice, and information from The Guardian‘s sponsored Hiscox partner zone.