Hello All, Need your input. Currently going through a period of cash flow issues as work has not come in for some time now. Work as a small management consulting firm (with focus around software and websites). I have exhausted the company over draft and borrowing money into the business from my personal account (which is now exhausted). With more bills to pay is it advisable to seek a company loan to keep going? What advise can you give. In regards to seeking work we have been working on tenders and trying to seek new clients but is very small and yielding mush results. thanks
Can you cut any of your business expenses? Can you change the way you try drumming up business? Can you expand your range of services to bring in new business? I'm guessing a few months without work is unusual.
As has Been said borrowing now would basically be throwing money into a black hole How about temp/agency work?
Sometimes it is worth considering other routes to customers. When I first started my consultancy business, I worked as an associate to a larger more established firm. The pay wasn't as good but at least it helped me to break into the market, work with some clients and have some case studies to talk about. I only needed to do this for about 6 months before I was able to get my own customers but it was effective in enabling me to gain experience and confidence in the SME market. Good luck with the new venture!
I would not take more borrowing as risk is too high and you might not get the best deal in this situation. Did you try crowdfunding or grants? Maybe you could review your business plan and try to extend the range of service and go for something more desired?
Don't take out more money Look to your past customers and give them a reason to put your company forward to others for a commission or prize
All valid responses. Thank you. Will keep you posted on how we go. We are currently redefining our service offerings and speaking to few clients. Thanks
Hi Jayman21, I hope it is all working out well.I was originally freelancing as well and getting work from smaller companies. I then pivoted into contracting for larger companies - which brings in steady revenue and has enabled me to build up a cash reserve in the company. Now I can get back to working with smaller companies and build a sustainable business knowing I have some time before cash runs out. So I agree with the above comments of temp/agency work or working with a larger firm. Good luck
I agree with the advice above, maybe picking up a part time role alongside your business and trying to reduce business expenses rather than going into debt would be a more sustainable solution.