4 Ways to Overcome Financial Woes As an Entrepreneur

August 2, 2022 Entrepreneurs, Start-ups, Small Businesses, FinTech and Alternative Finance, Fintech Services, Innovation and Resources, Marketplace Lending/P2P, Online Lending, BNPL, Online Funding / Investing Portals No comments

Guest Post | Aug 2, 2022

Image: Unsplash/Garrhet Sampson

Entrepreneurs are motivated go-getters who start businesses and willingly risk losses to make money. While many are fortunate to have robust business models to limit financial failures, some struggle in their early days to make enough money to get by.

It might not be that way forever, but getting over those significant financial hurdles during the early days can be challenging. If you know you’re on the right track but are still struggling financially, here are a few things you might like to try.

Getting Payday Loans

Money can be tight when you’re waiting on clients to pay you, even when their payments aren’t overdue. While you wait, consider payday loans from reputable providers like My Canada Payday. These companies can offer short-term, small loans, regardless of your credit rating, to tide you over until you get paid. Most don’t charge fees for paying them back early, and you can only borrow as much as you can comfortably repay. They might be the short-term solution you’ve been looking for.

Shortening Your Payment Window

You don’t always know the best payment practices when you first start your own business or side hustle. Such knowledge comes with time, experience, and, sometimes, making a few mistakes.

While many large corporations offer customers an entire month to pay their bills, you don’t have to follow their lead. There’s no reason why you can’t request partial payment upfront for your services and full payment within one week. Since studies have shown that one in 10 invoices are paid late, a shorter time frame might be much better for ensuring you maintain a consistent cash flow.

Reassess Your Pricing

Pricing products and services is possibly one of the most complex parts of launching and managing a new business. If you underprice, you risk not making enough money to stay afloat, but if you overprice, potential customers might visit your competition, leading to the same outcome as if you had underpriced.

Finding a balance can be crucial for business sustainability and growth, and you might need to utilize many different methods to find the ideal pricing structure. Know your customer, including how much they’d be willing to pay and ensure you have a firm understanding of all related costs. Having a revenue target and knowing how much your competitors charge for the same products and services is also crucial.

Have a Safety Net

Even if you crowdfunded to get your business off the ground, having a safety net of funds for troubling times might be worth considering. When you first begin thinking about starting your own business, open a savings account that you contribute to each week.

Rather than use this money for everyday operations, rely on it as a backup for when you’re not in a position to cover your essential bills. Where possible, repay that money when consistent income starts to flow in once more.

Entrepreneurship can be financially rewarding, but it can also be challenging, especially when you’re just finding your feet in the business world. If you’re experiencing financial woes as a new startup, you might be able to enjoy some relief and set yourself up for future success by doing some of the things above.

NCFA Jan 2018 resize - 4 Ways to Overcome Financial Woes As an Entrepreneur The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org