Question
After being open 6 months we are strapped for cash for buying inventory and expenses. So far we have not had any luck with bank loans. Crowdfunding may be an option, but it won't get us the kind of money we may need. Our overhead is at a minimum as we haven't paid ourselves as employees since January and my wife and I are 2 of 3 employees. We have a great concept but we haven't been able to get established quick enough. Any help or advice would be great.
Answer
The answer lies in understanding cash flow; it's cash in/cash out. You would have seen the problem if you'd prepared a 6 month rolling cash flow before opening your doors. Do you have a friendly banker? Work out your cash plan for the next 6 months; determine the negative cash flow. Rack your brain on how to reduce the negative. Then sit down with the banker, show your plan. Ask how he (or she) can help. When a financial person sees you understand and control basic business, you're more likely to receive positive support. If you want more info see Core Value Proposition, my book on Amazon.