Quitting your job and going self employed is incredibly scary. It’s a steep learning curve and you need to pick up a lot of new skills very quickly. Managing your finances is one of the things that people struggle with the most because it’s completely different from handling your own personal finances. It’s important that you do your research beforehand but that doesn’t mean you’re going to get everything right the first time around.
Look For Investors
Finding investors for the business should be your first port of call if your business is in trouble. If you can find somebody that has an interest in the business and convince them that they’ll see a good return on your investment, they’ll give you the money that you need to carry on. However, if you’re already in financial trouble, it’s going to be tough to convince people to put their money behind you.The most important thing to remember is that you have to be honest about your mistakes. If you start trying to make excuses about your financial troubles in the past, they’re not going to invest. Instead, you need to be upfront and admit that you’ve managed things badly and set out how you’re going to do things differently in the future. If you can do that, people are more willing to take a chance on your business and give you the money, as well as the financial advice that you need.
Remortgage Your House
If you need a big cash injection to keep your business running, you could consider remortgaging your house. However, it’s important that you think carefully about it before you decide whether it’s the right option for you. The first thing you need to do is look at property news and see what the housing market looks like at the moment. If the value of your house isn’t that high, it might be best to look for other ways to find the money. It’s also worth thinking about your personal financial situation because taking on another mortgage is a big burden and if the business doesn’t take off in the future, you could find yourself in a bad financial position.Get Better At Invoicing
It might be the case that you’re making sales but you’re not bringing that much money in because you aren’t collecting invoices on time. You’re paying all of your overheads but you’re not seeing any return from that investment. A lot of people that are newly self employed feel awkward about asking people for money and they worry that they’re going to lose customers, but that’s not the case. If you let invoices slide, people are just going to start taking advantage and you’re going to end up in a bad financial situation.It’s important that you’re giving people clear invoices with a payment date so there is no wiggle room. If they haven’t paid on time, send them an email reminder. Maybe they just forgot and you should give them the benefit of the doubt for a day or two. But if they’re still not willing to pay, you need to be calling them up every day and asking for the money. Eventually, you might need to threaten legal action to get the money that you’re owed. You might find that collecting invoices on time sorts out your financial situation and you don’t need to find that extra money.
Crowdfunding
Crowdfunding has completely changed the face of business financing. Instead of finding one single investor that is willing to put a lot of money behind you, you can find lots of different investors that are willing to give you a small amount. It’s a lot easier to convince people to part with the price of a coffee than it is to convince an investor to give you thousands so it might be a better option. As long as you can sell people on your business idea, you should be able to get the money that you need.If you can use these methods to get a quick cash injection, your business should be able to survive long enough to see success.
