If you are not in the financial position to put your own cash into your business you will need to find it somewhere else. Grants and government loans can take months or in some cases even more than a year to obtain. And the once accessible SBA Community Express loan programs no longer target helping women and are almost impossible to get.
I am going to assume that your business financial nightmares have also hurt your personal finances. If this is the case, try hard to avoid going deeper into personal debt to cover your business deficits. If it does go under, or you decide to shut the business down you could end up still footing the bill for an even bigger loss.
If you cannot afford to put more money into your business and cannot get a loan or line of credit, you have three other options to consider:- Ask family and friends for cash;
- Find investors; or
- Downsize and cut back on your expenses.
If your business is already in financial trouble you may find it hard to get credit, loans, or even investors. Be careful and honest about your business’ situation if you take money from family or friends. It is critical that anyone who invests in a struggling business understand their own financial risks.
- How to Ask Family and Friends for Cash for Your Small Business
- Working Capital - What Not to do When Your Business is Struggling
- Fundraising Ideas and Resources for Small Businesses
- Funding Resources for Business Women
Downsizing is a hard decision for many business owners to make. Scaling back and letting employees is especially hard for small businesses when people work closely together and may have deep bonds that go beyond the workplace. But it may be the only way to ensure the long-term success of your business.
- Downsizing - When You Should Downsize Your Business : If your business is in financial trouble you should consider downsizing. If a business fails, all employees will eventually lose their jobs.
- Downsizing - How to Downsize Without Guilt: The goal of any business owner should be to achieve long-term success and sometimes that best way to ensure longevity is to scale back.
- Downsizing - Alternatives to Consider When Downsizing: Before laying off employees, be sure that you have looked at all the options, including asking your employees what they would be willing to make sacrifices to help keep your business going – and their own jobs.
- Downsizing: Advice on Dealing With Layoffs and Job Cuts: Employment tips on how and when to lay off employees and alternatives to look at before mass lay-offs.
Business Decision Strategy Tips: What you do today has an impact on how your business will survive a year from now. Do not make an emotional decision during a business (or personal) crisis.
