As you research capital financing sources and sales growth decisions, let$$s explore how a start$-$up company can internally support sales growth $($without seeking outside capital$).$

As a start$-$up firm does not have a history of steady revenues much less profits, it is difficult for management to secure start$-$up capital investments in the firm during this stage.

So what other strategies might management employ to create needed capital? Some options may include:

Developing sales channels to support revenue through a specialized, experienced sales force. Cross$-$selling product lines, partnering with other companies, to include suppliers and clients could lower operating cash outlays.

Focusing on products $/$services$/$business areas with high margins

Closely managing working capital to include inventory and accounts receivables levels, as well as accounts payable

Providing an extended payment period on its purchases, or negotiating converting operating payables to an intermediate term, long term, or convertible note. On the other side of the working capital equation, management could negotiate a shorter receivables cycle or cash sales to customers.

Reinvesting$/$plowing back a high proportion of earnings

Maintaining a low debt$-$to asset ratio

Maintaining a high return on equity.

Seeking government or industry loans may provide some special options. State or county governments may provide some tax incentives.

What are some other options for management to secure start$-$up capital