There isn’t a more common problem in the world of business. Entrepreneurs have ideas, they launch startups and soon run out of money. If you’re in this boat, you should take solace from the fact that you’re not alone!
Still, that doesn’t mean you can afford to indulge in self-pity and rest on your laurels. For any chance to recover the situation, you must find more cash. It sounds like the simplest thing ever on paper, but it’s probably the hardest. Not many people will give up their resources readily.
So, what can you do to grease the wheels and get the ball rolling?
Covid Grants & Bursaries
Part of the reason businesses are struggling is the outbreak of a global pandemic. Normally, failure is down to owner error, yet this isn’t the case in 2021. The fact that the world’s economy has shutdown is an indicator of the pressure. Governments know they can’t sit back and do nothing, which is why grants and bursaries are available in their droves at the minute. Any company that can prove they have been impacted by the pandemic can apply for state and federal loans. They might not help you make a profit, but they should take care of most overheads.
0% Credit Cards
The next port of call is a credit card company. The term makes entrepreneurs break into cold sweats as there are lots of horror stories regarding mounting debts. And, even though pieces of plastic are risky, they are also advantageous when used correctly. A 0% card, for instance, won’t charge you anything for anywhere between six months and two years. That means you can use the funding without having to worry about the APR. You only need to cover the minimum monthly payment. In the short-term, this could be a suitable strategy.
Are you losing money because you’re not making enough of it? In this case, it’s time to tweak your strategy. Rather than spending money on areas that aren’t lucrative, you should focus on profitable parts of the company. For example, the more you put into an effective marketing plan, the greater the ROI. By learning how to invest your content marketing budget in the right ways, you could take the small amount you have and transform it into something special. Never underestimate reinvestment.
Lastly, use what you have at your disposal – your business. No entrepreneur wants to sell shares in their company because it means less control. But, you can get the cash injection you need without ceding 50% of the company. You can float 10% to 15% instead. This compromise brings in investors who want the equity and are willing to pay for the privilege. Angel investors are also alternatives, yet they are harder to come by. It’s essential to advertise what your business can do for investors to ensure they understand what they will get from the deal.
What can businesses do when the money starts to dry up? The main thing is not to quit. When you give in, you automatically lose.