“One of the most common mistakes people make is massively underestimating the amount of money they need to start a business and get traction.” ~Cliff Lerner
The most common need for all businesses, of all sizes, in all industries is access to the cash they need to provide the goods or perform the services that will lead to the growth of the business. Not only that, but the need for cash, upfront and readily accessible, in an affordable and flexible way that will fit the specificity of your business. Knowing this, why is it that discussing openly about needing cash and where to find it has become one of the most taboo topics in business? Nowadays, it is equally as awkward to bring up this topic as it is sex, religion and politics, which have forever been known as the ultimate taboos. I’d like to offer a perspective that may open this up for a more honest and comprehensive conversation. The more you know, the better informed your decisions on the matter will be, and that is the positive effect I intend.
We are all set
This is a phrase any sales person inevitably hears when attempting to engage a prospect with a value-add conversation. But I hear it all the time as well when I chat with businesses, and to this they are referring to their lending status. “We’re all set.” Really? For now? Forever? For the foreseeable future? It is the most common blow off, and I get it, you think you are…all set. But the truth of it is you probably don’t really know if you are, you just don’t want me to know too much or divulge something that makes you feel uncomfortable due to either:
1.) a true lack of understanding that you are not alone in this need and
2.) you believe actually needing cash infusion for your business means something negative about you as the operator or about the status of your business. (and neither is true).
If the need for a loan or line of credit to pull from so that you can perform at your very best and grow your business is the biggest need for all businesses, period, why is it such an intimidating subject?
Be bold, Be brave, Be willing to admit you don’t know everything
We say a lot to our network to concentrate on what you do best and outsource the rest. You can’t be an expert about everything, but surrounding yourself by experts at the things you don’t excel in will assist you at being efficient in all areas of your business. Efficiency with your accounting will allow you to see clearly where your money is at all times. If you don’t know if you are functioning at a profit or a loss at any given time, there is no way to know where your efforts need to be focused before something truly becomes a problem. With clear and concise accounting practices you will know how much money is necessary to perform at your best and grow your business. This will also assist in identifying the type of funding you can qualify for at the stage you are in, what is required for that funding, how much it will cost you in comparison to how much more you can make with it, and where you will allocate that money so that it is effectively assisting with positive growth. Don’t let what you don’t know about financing options keep you from making the decision that is best suited for you now. Ask questions, request information, accept the advice of experts in the field and demand to know all of the fees associated.
As we are heading for the finish line of FY ‘22 you are likely thinking of all you have ahead of you. Don’t be discouraged by a taboo. Be encouraged because all businesses are dealing with the need for more cash to do their work. But those business owners who have the courage to talk about it with other business leaders and the experts in the lending industry are the ones that pick the options that are best suited for them. Don’t be afraid of what you don’t know, be brave and ask for help!