Money. The lifeblood of every small business. As an entrepreneur, if you aren’t planning on making any money, then you really have no business having a business … what you have is a hobby and in some cases a really expensive one.
Businesses take money to start and to run. Period. Some businesses more than others. But the reality is that cold hard cash is often the easiest way to get a new venture off the ground and, ultimately, to fix temporary shortages in cash flow.
A lot of business owners assume that if they just had a grant or some free money, it would fix all of their business’s financial woes. Wrong. What entrepreneurs fail to address is that money alone often isn’t the solution to their problems. Rather entrepreneurs need to dig deep and look at the root causes and underlying problems as to why their business is failing. No amount of money can save an unprofitable business enterprise.
You don’t need a grant, what you need is a sustainable business model.
Before you decide to look for additional cash, give some serious thought as to “why.” Why isn’t the business making money? Why is the money needed? Why can’t the business sustain itself? You may discover that you haven’t built a sustainable business concept. You shouldn’t expect anyone to give you a loan or grant—it would simply be too risky and wouldn’t make good financial sense.
The easiest way to get money for your business is to sell, sell, sell!!! Sell like you’ve never sold before.
The Importance of a Business Model
Your business model is absolutely the most critical piece of your business. Take the time to research, plans things out, make good strategic business decisions, and understand how all components of the business work together. Also, know that the best business models change and pivot over time. Here are some key questions to consider before you consider injecting more money into your business:
- How, will or is your business going to make money? Make sure you have something of value that people want. Make sure you charge enough or have a big enough customer base.
- What’s currently happening in the industry and marketplace? Make sure your business is able to pivot towards opportunities and away from threats.
- Are people even interested in buying your product or service? Who are your ideal customers?
- What makes your business unique? How do or will you stand out from your competition?
- Do you know how to communicate what you are selling effectively?
One of the best tools that can help you develop your business model is the Business Model Canvas created by Strategyzer. You can find tons of resources online on how you can use it for your new or existing business. There is also a digital canvas which makes it easier to use and accessible online. Business Link also hosts Business Model Canvas workshops in both Edmonton and Calgary. Learn about our upcoming workshops.