Home: Message List - Negative cash flow, Need capitol injection, and adivce

Re: Negative cash flow, Need capitol injection, and adivce

Elite1 — Fri, 21 Nov 2008 03:36:12 GMT

A business in my area provides the same services as you. The business owner was struggling at first. So, she started a bulk advertisement mailing for the local businesses. It's a monthly booklet of advertisements. Some businesses include coupons or discounts in their ads. She obtained a bulk mailing stamp from the post office to reduce the cost of postage and provide her clients with a broader audience. The mailing goes out to over 12,000 homes. The revenue she received helped fund the start-up of her business. Maybe something like this would help you?

Tanya
Elite Financial Services, LLC

Re: Negative cash flow, Need capitol injection, and adivce

flaguy — Fri, 09 May 2008 04:22:51 GMT

I would like to thank CEO Space and Lighthouse24 for the great answers given to the original poster. I recently contacted someone on the forum concerning funding who was very knowledgeable, and pointed out some of my cash flow issues through private phone calls & e-mails. Although I thought I had a good grasp of my numbers, between him pointing out some problems and these helpful posts have now gotten me moving with some additional cuts and information to contact some additional sources of funding with confidence again.

We have recently made several cutbacks, and been able to reduce last years spending by approximately 125K which SHOULD get us into positive cash flow. IF I can consolidate a LOT of debt quickly to keep my head above water. Debt service can drop by 25% or more.

Anyone got a spare 300-400K hanging around?

By the way... guitarboy8d6 if you're still out there how was the turn out? Thanks again to all the helpful posters.

Re: Negative cash flow, Need capitol injection, and adivce

carson — Wed, 19 Mar 2008 18:40:34 GMT

Have you been able to show your companys commitment regards paying off loans collected and also do have a detailed plan to show the real nature of your companys and its use of capital for profit maximization?all this will be definitely needed by an interested investor.if you can get me with these then i think we could settle for an agreement as to investing in your venture,do send the informations to doncarson7@gmail.com

Re: Negative cash flow, Need capitol injection, and adivce

print28 — Wed, 19 Mar 2008 14:38:37 GMT

I am new to this site, and I read all of the forums, and just read this one! We own a small printing and promotional products company in Alamance county, NC, and we are not getting but a few jobs. PIP Printing in Burlington, NC, is very big, so we decided to go to other states, and counties. Juan is helping me with a site, but, I need help in, like the person you corresponded with, a new proposal, and business plan!!!!! My husband has been in the printing industry for 28 years, and we decided to go out with our own company in 2006. We also offer services in promotional products, and have added racing promotional products, for drivers and race tracks. We just cannot get people to understand the high quality of services that we offer, and they definately need to look at their invoices from other companies!!!!! I am not saying that to burn any bridges with the other printers, we just want our business to GROW!!!!!!!! Like last month, our profit was $140.00, and that is not good at all!!!!!!!!!!!!!!!!!!!!!!!!!! My husband does work fulltime for another printer, and also a part time job for another printer, and then prints for our company!! I do sales/marketing and alot of cold calling!! We have alot of quotes out there, but no one bitting yet. We have quotes for a local short track, and was so hoping to get the job, but have not heard back from them!!! I need some help, and you guys, are so brillant with what I have read, I wished that I had known about this years ago!!!!!!! I was in a networking group last year in our community, but it was so expensive, we could not justified in joining this year! I know I sound pity party, but I want this bad, and as you can see, we are working , and trying to get this working also!! Thank you for your time!!!!!

Re: Negative cash flow, Need capitol injection, and adivce

CEO Space — Mon, 14 Jan 2008 01:45:05 GMT

There is a lot of great advice to you. There has been however, some people advising you (or anyone) to keep a job while getting a small business off the ground.

In all my 23 years of business (running my own and consulting others) I have NEVER seen a business
survive where the owners had jobs outside of the business. Never. Not once.

What you are describing in the primary reason most small businesses fail. Lack of initial capital.

It always takes twice as long and costs twice as much as you thought and sales are slower in coming than your projected.

So, my suggestion would be to review your business plan and have a solid plan that works for you.

Another suggestion is the book, "Instant Income" by Janet Switzer. This book gives you lots of "right now" marketing tips to get cash in the bank. Things that most businesses can do in a week or so.

Jack Canfield and Mark Victor Hansen of the Chicken Soup for the Soul books (who are members of our network) have used Janet Switzers ideas to get them out of situations in the early days.

I just looked it up online and if you buy it online, you get some bonuses so I would suggest that
if you can't wait, just go to any bookstore and buy it.
http://www.instantincome.com/

Good luck.

Re: Negative cash flow, Need capitol injection, and adivce

Finances4Life — Sat, 29 Dec 2007 03:58:04 GMT

Dear Guitarboy8d6:

Please go to Prosper.com to see if they can help you with your capital problems. It is a peer-to-peer lending company/website. The better your credit rating, the better a chance you will have to receive funding for your business.

I hope this helps.

Re: Negative cash flow, Need capitol injection, and adivce

guitarboy8d6 — Sat, 03 Nov 2007 06:59:14 GMT

That was more of what I was looking for. Thank you lighthouse. I am going to work off of what you are saying. Showing lessons learned and such. That is the best way I can find from my research.

DomainDiva thank you for sharing what your business is doing. I found it reassuring since we are planning to do something similar to members of the surrounding chamber of commerce. We also have a flyer going out in the next chamber news letter. That is already setup and paid for.

We also are going to experment a little with indoor digital billboard advertising. It is a fairly new thing but from the other business owners I have talked to it has worked well. We can experment with it for a month at a really low cost.

To answer other question yes we will be reimbursed for some of the money lost to repair.

And our web site is www.ten31studios.com

I would like to thank everyone who contributed and will take more ideas if anyone has any.

Thanks

Re: Negative cash flow, Need capitol injection, and adivce

Lighthouse24 — Fri, 02 Nov 2007 22:59:15 GMT

To a typical lender or investor, the situation you've described will sound like, "We did this and lost money, so now we want to do more of it -- and the only way we can is to borrow $15K from you." In your follow-up post, you write, "I need help . . . figuring how to present that." Honestly, I'm not sure there's a way to successfully present that message. (You can put a gown and a tiara on a barnyard pig, but it doesn't make her the homecoming queen.)

I think the message you really want to deliver, and the presentation you really want to make, will follow this general outline:

We did this and lost money.
Here are (at least) eleven things we learned from that.
Here are (at least) seven alternatives we explored for changing the way we do business in order to increase our profits, and here are the pros and cons of each of those options.
Here are the three best alternatives, which we propose to implement immediately.
One of those three alternatives relies on your assistance, and here's why providing us with that assistance is beneficial for you and for us.
I am asking for that assistance, as well as for your input on other options you might suggest to strengthen our business.

When you've been losing money, the potential lenders' default conclusion is that they'd only be throwing good money after bad -- that is, unless you can show that you've learned some key lessons and are doing things differently now. When you tell potential lenders "the only way we can do this is...," they will conclude that you don't know your business very well -- because there are always at least seven options for modifying the way a business does business (and in reality, spending more money on marketing might not even be one of the best three). Finally, potential lenders have to know that you have looked into the future and considered not only the best case you're hoping for, but the worst case they're imagining -- and that in either case, you can pay them back.

I sincerely hope this helps you prepare, and ultimately gets you the cash infusion you need. Good luck!

Re: Negative cash flow, Need capitol injection, and adivce

Kelly90755 — Fri, 02 Nov 2007 18:43:40 GMT

Now you got to the crux of the whole matter--you had to spend marketing money on repairing computers! The first rule for a start up should be: Pay for Insurance before paying yourself. Second is: Keep a job to feed yourself while you get off the ground.

Given those two parameters, was there insurance in place that would have paid for the computer repairs due to the storm damage? You may still be able to file a claim. Also, reduce your marketing budget, just enough to cover that insurance cost.

Re: Negative cash flow, Need capitol injection, and adivce

scsurfguy — Fri, 02 Nov 2007 18:16:30 GMT

Do you have a website that we can check out? Might have an answer that will fit your budget and bring money in.