Every mompreneur knows that working capital is essential in business. When you need cash the most where do you find it?
Every mompreneur knows that money is essential in business. You need it to operate, and you want to make more of it so you can enjoy a healthy profit and income. Unfortunately, most small business owners find that money has a knack for being elusive. When you need working capital the most, it simply isn’t there. And even when your business is starting to take off, you can still struggle to find the cash you need to cover the costs of operating.
Find that cash injection you need just to cover the bills can be really hard. It really does take money to make money. So where on earth are you going to find the working capital you need to keep your business going? And what chance do you have of growing your business and your profits if you can’t find that cash up front?Need working capital for your business? Read this.Click To Tweet
WHY YOUR BUSINESS IS STRUGGLING
Most businesses go through a period of struggle. These are your most vulnerable months when you start to question your very being! Money is flowing out faster than it is coming in. And you seem to be spending more time chasing people that owe you money for services rendered or goods sold than you do actually selling.
People owe you money
If people owe you money, you need to find a way to make sure they pay. Have you recently checked your contract terms? If you’re giving companies more leeway than you can afford, it’s time to rein that in. Some of the bigger companies you work with might not like it, but you are small and need a healthy cash flow. You don’t need the headache of chasing them up when payments don’t arrive on time.
You don’t have the cash to invest in growth
No mompreneur is satisfied with the status quo. We’re an ambitious bunch with drive and determination! We want more. We want to be more, and we want to do more. That’s why we’re in business, and that’s why we want the business to grow. More sales, more customers, and more prestige!
You can’t diversify and expand your territories without extra equipment and resources
Of course, growing often requires some diversification and expansion into new markets or territories. Chances are that you can’t do that without extra equipment, buying power, or resources like employees. Perhaps most importantly, you need time to get all that set up. As usual, you’re still chasing for payment.
You don’t have the time (or energy) to do what needs to be done
Mompreneurs are busy. They’ve got kids, a household to run, and possibly even a day job to maintain. No wonder you don’t have time for all the chasing. There’s no time to grow your business, and there’s no time just to get the basics done. You’re probably close to exhaustion as well! Why can’t running a business go a bit more smoothly?
You haven’t planned that far ahead yet
Ultimately, many small businesses and startups struggle because there isn’t a clear plan of action written down. You might not have had the time to plan that far ahead, or your vision for the future might still need a little refinement. If you’re struggling, now is definitely the time to fix the problems and detail your action plan going forward.
WHAT YOU CAN DO TO FIND THAT CASH INJECTION
If chasing payments is sucking your will to be in business right now, then let someone else do all the work. Companies like Business Factors pay you the monies your customers owe you up front, right away, with no hassle. Then they go and chase up to get themselves reimbursed. Meanwhile, you have the money you were owed almost immediately so you can start investing in your company’s future.
Business loans are very hard to come by, especially for startups. Even if you can convince the bank (or a friend) to lend you some cash, you’re going to have to pay it back with interest. This commits you to regular payments of a set amount for a prolonged period of time. What happens if you’re owed money, but it doesn’t come in on time? Loans are expensive, but the funds are often released pretty quickly.
If your business is showing signs of success, you might be able to attract some investors. Investors often have large sums of cash available for entrepreneurs with good, marketable ideas. Usually, you need to have a proven track record of sales and growth. But if your idea is very exciting you may get a specialist investor jumping on board with little need for persuasion. However, the chances are that you need to let go of some shares in your business. You will be powerless to control what happens to those shares in the future. And few investors are quiet. They want a say in how you run your company.
Sell Up And Let Someone Else Have A Go
If you’re really struggling to find the love for your business right now, you could sell up, take the cash, and move on to the next thing. It’s not the end of the world, and chances are someone else with more money and resources can take what you started and make it huge. If you’ve got your sights set on different projects, this could be the ideal solution for you to carry on as a mompreneur without the hassle.
Marketing Boost For More Sales
If you’ve got the marketing savvy, you might be able to come up with some campaigns that give your business the boost in sales it really needs. Of course, if all your customers are paying by credit card, you might still have ages to wait for that cash to appear in your bank account. You also need to consider how you’re going to supply any boost in demand without the cash upfront to pay for resources or products.
Some marketing campaigns require a pot of cash up front that you then draw from as you go. Online marketing is typically set up this way. If you sell online, you may not be in a position to pay for a big sales push right now. Getting creative with your marketing will be necessary if you want to attract more orders. Remember, very few people are willing to wait for their products or services to be delivered. You’re unlikely to be able to wait for funds to arrive before delivering the order.
WHERE DO YOU REALLY WANT TO GO?
If you’re struggling with your business, you might already be wondering if you should continue with it. Now could be a good time to really think about where you want to go personally and professionally. You might have started this business with one intention, but if that’s no longer relevant, you should consider what you want right now. Where do you want to be in five years time?
Getting the money and putting it to good use
Once you’ve got your money from everyone that owes you, it’s easier to decide where to put it. Beyond paying your own debts, there is a chance for you to invest in your business. Don’t just keep it going, but grow your business. You might even take it in new and exciting directions. Working capital is one thing, but if you’ve secured additional funding, you now have the opportunity to make something happen. So what will it be?
Making a plan
Every idea needs a plan to figure out how (and if) it will work. What are your goals? Do you want to increase sales so that your personal income will increase? Do you want to reach new territories so you can move to a new area? Specify what the goal is and include details about how you can measure your success. When do you want to achieve this goal by, and is that even realistic? SMART goals can help you focus on your intention and achieve more.
Of course, if you’ve spent the last few weeks struggling to keep your business going, you might decide that now is the time for a break. You might choose to invest your cash in paying the salary of a new employee. This employee might specialize in sales or simply provide you with the administrative help you need to free up your time. It’s really tough when everything depends on you being at your best constantly.
Building a vision, building your business
As a mompreneur, you probably have a vision. Take the time to build that vision up and figure out a plan to make it happen. If you build your vision, you can build your business. Expansion and growth can lead to exciting challenges. Are you ready to take those risks now you’re addressed your business finances? Working capital is essential to keep your business running. What you need now is an investment and an injection of cash for the future. Just how far do you want to go with your business?