Failing To Fund A Business Is More Common Than You Think!

Pixabay Link

You might think that it’s easy to arrange and organise funding for your business, but it isn’t. In fact, it’s true to say that a lot of companies struggle to get the funds they want when they need them. There are a wide variety of reasons why this might be the case. By looking at them in more detail we can better understand the situation and work to find effective solutions.

Commercial Viability

If your business idea or concept isn’t commercially viable, you’re going to struggle to fund it from day one. The reason for this is quite simple. No one’s going to want to invest in your idea because there won’t be enough people who are interesting in buying your product. You will even struggle to get a business loan that can often be used to jump start a problematic company. So commercial viability is crucial and if your business doesn’t have it, you need to find it. You can do this by focusing more funds on marketing and promotion. This should help you reach a wider audience that might be interested in your company.

funds2

Pic Location

Risks And Gambles

Investors hate businesses that are risky. They hate them so much that they will avoid providing even the most basic services to high risk companies. If your business is classified as high risk, you might even struggle to get the most basic financial support for your business. For instance, you will no doubt want customers to be able to pay for products in as many secure ways as possible. Particularly if you are providing products that are expensive and difficult to pay for straight up. However, if your business is high risk, you might struggle to find a service suitable for your company. Luckily high risk merchant accounts are available online to fit this need. Therefore, as long as you invest in the services of one of these companies you won’t need to worry.

Payback

Many business owners struggle to get the money for their company because their customers fail to pay on time. Rather than paying straight away they hand the business the equivalent of an IOU. Now, you might think the best way to deal with this is to not accept purchases from any companies that refuse to pay up front. There are two issues here. First, they might not announce their intention to pay later upfront. Second if you don’t let them handle the transaction this way you could lose the sale completely. That’s the last thing you want. There’s an easy fix though and that’s to sell on the unpaid invoices to quickly gain the money you need.

No Charisma

funds3

Flickr Picture

Lastly, to ensure you get investments in your business, you’ll find you need charm and tact. Without this you can almost guarantee that investors are going to look the other way. Don’t forget, it’s not just your business that needs to be marketable. You do as well and if you’re not you need to find someone who can fill this void.

funds4

Picture Source

You may also like

Leave a Reply

Your email address will not be published. Required fields are marked *