How to expand your business (example of renting trucks)

[Dien Rice]

One guy, A.M., emailed me, mentioning that he had a profitable business renting out pickup trucks...

He wants to expand the business, but he doesn't have the money to expand as fast as he wants to.

How would you solve this problem?

The way I'd look at it, you have four options...

1. Get one or more investors. The investor then owns a part of the business. You use the investor's money to buy more trucks, to expand the business. (To do this, you may have to make your business a company, and you should seek the advice of an accountant who can help you with this.) Sometimes investors can cause problems down the track though. I would be sure to retain at least 51% of the business (so you can't be kicked out of your own business).

2. Get a loan. This can be from the bank, but it can also be from family and friends. You can use the loan money to expand the business. (Some people offer to pay the money back plus extra, by a certain deadline, as an incentive for people to loan you the money.)

3. Grow the business using just the profits. This way will probably be slower, though, than the other ways.

4. Go to the casino, go to the roulette wheel, and put all your money on black. (Ha, just kidding, don't do this!)

What would you do?

Best wishes,

Dien