We’ve probably all heard the saying, but how true is it when it comes to the world of business, specifically fintech?
For any business that is looking to grow; whether they have a new idea they want to act on, or if they’re looking for ways to make their business more attractive for sale, innovative and radical thinking is the norm. But what happens if you don’t have the time, money or resources to finance this growth yourself? With so many choices, influences, and in the fintech world, a whole world of governance and regulation, how can a business scale up quickly?
Partnering with another business
One of the most common reasons for partnering with another business is to save money. When you partner with an expert you can take advantage of their knowledge, meaning that you don’t have to invest in new talent or training. It also prevents you from being responsible for upgrading any technology in the future or upskilling permanent staff members, meaning you can continue to benefit from the most recent developments in the industry without the hefty price tag that comes with it.
Partnering also saves your company a huge amount of time and ensures that your internal teams can remain focused on other company priorities, promoting a more agile and flexible environment and taking the stress off their hands.
Being able to take advantage of the knowledge of an external, expert team fills knowledge gaps that exist within your own team, finding faster solutions to existing problems and making it easier for you to scale up quickly – something which is vitally important for any fintech business.
Partnering with another business isn’t the right answer for everyone. One of the most common issues that you may come across, especially within the finance world, is the additional complexities that are introduced in areas such as compliance. These can slow down progress and can make it difficult to get projects off the ground at all.
Going it alone
Deciding to use your own resources to move your business forward is perhaps more of a traditional choice, and one that has a great deal of benefits. Firstly, this allows you to be the master of your own destiny, meaning you don’t need to rely on the availability and knowledge of others to make progress.
It is also a great way to upskill your own staff, especially if the route you’re taking is something which you feel will become a bigger part of your business in the future. This is great for their own personal development, potentially reducing staff turnover and helping them to achieve more from their role.
Another positive that can be gained is that any success or achievement made is completely your own and something which your business can be proud of – especially when it comes to new and innovative products that could lead the way to a new path in your industry. It’s a brilliant opportunity to be seen as thought leaders in your trade.
If you’re a business looking to scale up and sell on, too many stakeholders can turn off potential buyers, whereas less stakeholders will likely mean more sales revenue for the business owner.
Alongside these positives, there are also potential negatives as well. One of the most obvious is that if you are solely responsible for creating solutions and development, this can be a huge drain on your internal resources, especially those who need to go through training to gain the knowledge they need to complete the task at hand to a high standard.
You also miss out on external stimulus – the opportunity to bounce ideas around with those outside of your team who are likely to be able to look at problems from a different point of view and potentially offer solutions to problems that you may not have thought about.
Scaling up your business for sale
If you are thinking of selling your business in the future, the likelihood is that you’ll be wanting to get it in the best possible position before you go through this process to ensure a good sale price.
One of the benefits of raising capital from investors is that you are able to invest in new ideas and concepts quickly. By sharing ownership of the business, you may also bring in new thinking and use your new shareholders as a source of introductions to potential customers or partners. They may even be willing to join your management team.
Financing your company in this way also means that you take on no new debt, something which will be appealing when you come to sell and could help to save you money in the short and long terms.
One of the biggest downsides to this option is that you will need to give up some level of ownership and control in your company, something which many business owners do not want, or are not in a position to do.
How to choose to right route for your business
Choosing which way you want to go is a very personal decision and one that will largely be led by a variety of different aspects, such as available budget, staff availability, complexity of the development and the time you have to dedicate to the project.
If you are considering selling your business in the future, the decision you make could well be different depending on how long you want to stay in control.
The key thing to ensure is that the decision has been worked through properly with all relevant stakeholders and all business goals and potential risks have been outlined. Taking the time to plan properly will put you in the best position for a result which suits your business.
At Datam, we have a revolutionary approach to merchant sales and journey management which simplifies the entire process, using the latest technology to help you overcome the typical onboarding problems that many experience. Our method helps our customers and partners overcome the inefficiencies in their sales and onboarding process and take the usual frustrations off their hands.
We have built our business on the concept of ‘partnering up’ and have found this approach helps our clients to boost their businesses, taking advantage of our technology and knowledge and giving them the space to focus their attention on other business matters.
If you’d like to find out more about what we do or how our process works, please get in touch with us today.