By: Ethan Rogers

Many business entrepreneurs dream of growing their companies to create a larger impact in the market sectors they address. However, often small businesses are not able to handle this anticipated growth.

Andre Dowdell Jr. of Liquida Capital, which assists businesses to scale-up through financial support, believes that at the heart of every entrepreneur is the desire to see increasing growth and influence. When he started his own car-related company after leaving professional football, he says scaling the business was one of his key areas of focus. 

Having successfully leveraged the business to a seven-figure revenue, he is now determined to help other business owners scale their companies. When he had accumulated enough capital through the car-related business, he then went on to open Liquida Capital, which helps companies secure finances to enable these dreams of growth to be realised.

He explains that he had to accrue over 5 million dollars in business capital before he could even begin to help other businesses get access to their own capital. “The biggest challenge that I faced was trying to scale up my first–ever seven-figure corporation by myself,” he says, “but I have realized that it is possible.”

He has also formed relationships with strategic corporate partners, including major U.S. banks, to help Liquida Capital to achieve its purposes. 

He continues: “Scaling a business isn’t just about having more customers or bigger goals. It’s about being strategically prepared to handle and sustain growth, and this requires capital.”

The Challenges of Business Growth

Andre explains that before revenue can increase in a company and growth can happen, the management team has to invest in various aspects of the business. For example, more people need to be hired, and existing teams need to be upskilled. Furthermore, technology needs to be updated. This might mean extending cloud services and automation processes. 

“There is also a need for bigger warehouses, office expansion, and more space in general,” says Andre.

He says this upfront investment in infrastructure has to be made before the return comes in.

Additional costs are also needed to allow for supply chain and inventory expansion. “To serve customers, you will need more raw materials, products, and logistics support,” explains Andre.

Scaling also involves expanding your brand’s reach. For this, companies need a larger marketing budget. “The company might also be entering new markets, which might require extra market research,” says Andre. “For new markets, an extra sales team might also be required.”

He continues: “System upgrades will be needed. Your old tools won’t cut it anymore. This might include upgrades to data infrastructure and cybersecurity or ERP systems. These upgrades are essential to handle volume, but they’re expensive and complicated to implement.”

It’s these exorbitant and, at times, unexpected costs that Andre says he and his team from Liquida Capital help businesses face and overcome. 

Overcoming the Odds to Reach New Markets

According to the U.S. Small Business Administration (SBA), a small business is typically defined as a company generating between $1 million and more than $40 million in annual revenue, with fewer than 500 employees. Based on this definition, small businesses account for 33.2 million enterprises in the U.S.

Through fuelling innovation and providing critical employment opportunities, these small businesses are a cornerstone of the American economy.

Andre believes that helping these small businesses grow in impact and revenue is key to sustaining a strong economy in the future. Having funded three out of four venture capital deals, Liquida Capital is fast making a major impact on the local economy. The stalwart company has funded millions in business capital to its clients over the past year. This kind of financial backing is significant leverage for companies that are now, in turn, impacting and benefiting the lives of others within their reach.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any organization. The information provided is intended for general informational purposes only and should not be construed as financial advice. Readers are encouraged to consult with a professional financial advisor before making any business decisions. The author is not responsible for any outcomes resulting from the use of this information.

Published by Joseph T.