Money Problems Often are Not Money Problems

money-chartYou need money for your small business. By definition, you have a money problem, right?

If you do, you won’t be able to get any money!

Funders won’t risk their capital to help you with a money problem. They will help you with a timing problem.

What’s the difference?

A money problem isn’t likely a money problem at all. It’s a marketing problem disguised as a money problem. Or it’s a sales problem, a people problem, a production problem, a systems problem, or any number of other things.

You can’t finance your way out of a problem. You have to fix the real problem.

A timing problem, on the other hand, means you will have the money in the future. You just don’t have it now, when you need it.

It means you have an opportunity to make a lot of money if you can just get a little money, relatively speaking.  Funders love helping you solve timing problems! 

(Image in today's post by kikashi)

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  1. […] business owner came to us because he was experiencing cash flow problems. We determined he had a timing problem, not a money problem. He was growing too fast for his capital […]

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