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How to Handle Your Startup Company When You’re Running Out of Money

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running out of money

Setting up a startup company is a struggle. You need to find enough funding to ensure that the company takes off along with finding the right resources so it runs smoothly. There are a lot of great startup ideas that don’t translate into entrepreneurial success right away.

You might even reach a point where you no longer have enough finances to keep the business running. It could be because the idea was not well-embraced by many people. It is also possible that your investors are no longer willing to bridge you. Worse, you might suddenly have a competitor attracting all your target customers to their side.

If this happens, the first thing you need to do is stay calm, there is no point in panicking. Money is fluid in any business and this is an issue that can still be fixed. Once your business is running out of money, you still have a few weeks left to recover. Make the most of whatever time you have in your hands. When you are panicking, you might make the wrong decisions and this is going to hurt your business even more. Gather your thoughts, compose yourself and focus on what needs to be done.

Here are a few things you can do when your business starts running out of money:

1. Determine what went wrong

Before you can think about what needs to be done, you have to assess what happened first. Get to the root cause of why you are running out of money at this point in your startup business. You can only decide what would be best for the business if you have assessed all the details.

However, make sure that this process does not turn out to be a blame game. You don’t want to reach a point when feelings get hurt and you get stuck with that. This is not the time to blame, it is the time to make the right moves.

2. Write out your options

Since you are already having a hard time with your business, you can either raise money to pay for the loans and have enough cash on hand, or sell the business. There is no right or wrong direction. It depends on how you assess the situation. If you think you can still find a way to raise money and salvage the business, do it. On the other hand, if you can find interested investors and they have the capacity to turn things around, you better entrust the company to them.

“Give me six hours to chop down a tree and I will spend the first four sharpening the axe.” – Abraham Lincoln

3. Start moving

You only have a small window between now and the day when you fully run out of money to keep the business running, therefore, you need to act quickly. If you want to look for investors, call people. Let them understand your offer. Tell them to make a decision as soon as possible so that you can also entertain other interested parties. If you cannot find investors, you might decide to lay off some employees. This is not the best way to move forward, but it is a cost-cutting measure after all.

4. Don’t act desperate

Yes, you don’t have enough money to run the business the way you would have wanted and you are also running out of time, but this does not mean that you should act desperately. You have to remain professional. When talking to potential investors, don’t show that you are in a panic mode. Instead, show them the benefits of buying your business or investing in it without lying about your current financial status.

You should also negotiate and make deals that are somewhat favorable to you. Don’t immediately close a deal because you feel like you won’t have any other option left if you let go of this one.

5. Keep working hard

Aside from raising money, continue looking for creative means to improve your business. If you have determined that you have low sales, you might want to improve your products. If the problem is that you are not reaching out to a lot of people, rethink your marketing strategies.

This time, you should involve more people on your team. Perhaps, the previous ideas failed because you did not consult a lot of people. You only relied on what you thought was right. It doesn’t work that way for startups. A lot of people have something to contribute to improve the business and you need to trust that they can get things done.

If your target customers were taken away from you by other unexpected competitors, don’t just leave the fight, you have to fight head on. Nonetheless, this does not mean you have to fight dirty. It means you need to find out what their weaknesses are and improve on them so you can have another selling point. Keep researching and understand what the market needs and what the trends are.

“Success is no accident. It is hard work, perseverance, learning, studying, sacrifice and most of all, love of what you are doing or learning to do.” – Pele

6. Integrate other business ideas

Your business might not be doing well right now for several reasons. If you think that it is because you didn’t come up with a great idea, perhaps it is time to integrate other ideas. You can expand your business so you can reach out to more people. You can also start another business that is more profitable so that you can use the said profits to improve the other business. It is just a matter of how you make the most out of this new business idea to improve everything.

What were some things you did when your business ran out of money? Comment below!

Grace Rivera lives in Boulder, CO with her husband, Jack, and twin boys, Felix and Max. Grace assists companies with their brand and marketing strategies, specializing in effective retail store layout such as printed ads, custom signs and more. Armed with a Master’s Degree in Marketing, countless blog posts and publications, and proven results, it is no surprise that many local companies trust Grace to get their business on the road to success.

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Startups

15 Business Lessons From Napoleon’s Playbook

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Business Lessons and strategies from Napoleon Bonaparte for Entrepreneurs and CEO's
Image Credit | Joel Brown

Unleash your business potential by harnessing Napoleon’s strategic genius.

From dreaming big and thinking bold to moving fast and staying agile, these time-tested tactics are your blueprint for success.

Learn how creative leadership, detailed planning, and relentless execution can transform your business landscape. Boost morale, lead with clarity, and embrace hard work to conquer your industry.

Don’t just survive—thrive with the power of Napoleon’s lessons.

Here are 15 Powerful Lessons You Can Learn From Napoleon Bonaparte

 

1. Dream Big, Think Bold

Napoleon wasn’t just playing small; he believed that “Imagination rules the world.” In the business world, boldness and creativity are game-changers. Don’t just aim to fit in—push boundaries and set ambitious goals that make you stand out.

Think of Steve Jobs, who didn’t just want to make computers; he wanted to revolutionize entire industries. Your vision should be so grand it almost feels unreachable. When you dream big, you inspire those around you to believe in the impossible and work together to achieve extraordinary outcomes.

2. Move Fast, Stay Agile

Napoleon’s quick and secretive moves gave him an edge. In business, you gotta be nimble. Adapt quickly, move fast, and you’ll often find yourself ahead of the game, capturing opportunities your competitors miss.

Companies like Amazon and Tesla thrive because they constantly innovate and pivot when needed. Speed is your friend; it allows you to react to market changes and customer demands faster than the competition, ensuring you remain relevant and ahead of the curve.

3. Creative Leadership

Napoleon thrived on chaos and wasn’t afraid to switch things up. Unlike rigid leaders, he was flexible and adaptive. In business, embrace change and let chaos work for you. Being adaptable can turn unpredictable situations into opportunities.

Think of how Netflix transitioned from DVD rentals to a streaming giant. Flexibility and creativity in leadership allow you to navigate through turmoil and emerge stronger, transforming challenges into stepping stones.

 

4. Organize Like a Pro

Napoleon’s mind was like a supercomputer, processing vast amounts of info to make smart moves. Businesses should do the same—stay organized, use real-time data, and adapt strategies based on fresh insights to keep that competitive edge.

Utilize modern tools like CRM systems, analytics software, and AI to manage information efficiently. Staying organized and informed means you can make better decisions, foresee potential issues, and react promptly.

 

5. Keep It Simple

Napoleon knew the power of simplicity. Overcomplicating things can bog you down. In business, streamline processes and focus on what truly matters to hit your goals efficiently.

Apple’s product design philosophy under Jobs was about simplicity and user-friendliness.When you remove unnecessary complexity, you reduce errors, speed up processes, and make it easier for your team to focus on what’s important, driving efficiency and effectiveness.

 

6. Execute Relentlessly

Once Napoleon decided on a course of action, he went all in. In business, once you pick a direction, pursue it with full commitment. Execution is where success is truly made.

Look at how Elon Musk commits to his vision for SpaceX and Tesla. Relentless execution means overcoming obstacles, staying focused on your goals, and not getting distracted by setbacks. It’s the determination and persistence in execution that ultimately leads to triumph.

 

7. Play to Your Strengths

Napoleon only fought battles he knew he could win. In business, focus on your strengths and avoid head-to-head fights in areas where you’re weak. Know your advantages and leverage them.

Microsoft leverages its strength in software development and cloud services rather than trying to compete directly in hardware. Understanding and maximizing your strengths ensures you play a game you can win, using your unique capabilities to outshine competitors.

 

8. Plan in Detail

Napoleon planned for every possible scenario. Businesses should do the same—conduct thorough planning and prepare for various outcomes.

Detailed planning helps you stay ready for anything. Scenario planning and SWOT analysis are tools that can help you foresee different futures and prepare accordingly. When you’re prepared for multiple scenarios, you can adapt smoothly and continue to drive forward, no matter what challenges arise.

 

9. Seize Opportunities

Napoleon saw luck as the ability to capitalize on accidents. In business, be prepared and ready to grab unexpected opportunities. Agility is key.

Companies like Uber and Airbnb seized gaps in the market by being ready to pounce on opportunities when they arose. Always be on the lookout for opportunities, and when they come, don’t hesitate. Preparation and readiness to act quickly can turn unexpected moments into major breakthroughs.

 

10. Learn from the Past

Napoleon studied the greats who came before him. Entrepreneurs should always be learning from the successes and failures of others. History is full of lessons waiting to be applied.

Warren Buffett is famous for studying businesses and market histories. By learning from the past, you can avoid repeating mistakes, understand what works, and build on proven strategies. Continuous learning from history helps refine your strategies and improve decision-making.

 

11. Boost Morale

Napoleon knew how to keep his troops motivated. Business leaders should do the same—keep your team inspired and engaged. High morale leads to high productivity.

Companies like Google and Salesforce invest heavily in employee well-being and motivation. When your team feels valued and motivated, they are more productive, innovative, and loyal. High morale fosters a positive work environment where people are excited to contribute and excel.

 

12. Lead with Clarity

Napoleon believed in the power of a strong, decisive leader. In business, clear direction and strong leadership are crucial. Ensure everyone knows the plan and follows it.

Leaders like Jeff Bezos provide a clear vision and direction, ensuring their teams know what they’re working towards. Clear, decisive leadership aligns your team, fosters trust, and drives coordinated efforts towards achieving your business goals.

 

13. Reflect on Failures

Napoleon analyzed both his wins and losses. Businesses should review their successes and failures to keep improving. Learn from mistakes to avoid repeating them.

Ray Dalio of Bridgewater Associates emphasizes the importance of learning from failure in his book Principles. By conducting post-mortems, you can understand what went wrong, make necessary adjustments, and continuously refine your strategies to avoid future pitfalls and drive success.

 

14. Action-Oriented

Napoleon was all about turning thoughts into actions. In business, decisiveness and execution are vital. Don’t just plan—act on those plans with energy and determination.

Entrepreneurs like Richard Branson embody this principle by constantly moving from ideas to actions. Action orientation ensures that you don’t get stuck in analysis paralysis but instead drive forward, making things happen and turning visions into reality.

 

15. Embrace Hard Work

Napoleon lived and breathed work, saying, “Work is my element; I am born and built for work.”

In business, a strong work ethic and relentless dedication are key to success. Think of how Howard Schultz rebuilt Starbucks through sheer hard work and determination. Embracing hard work means being willing to put in the necessary effort, staying dedicated to your mission, and continuously pushing towards your goals, no matter the challenges.

 

By implementing these lessons from Napoleon, businesses can sharpen their strategies, strengthen leadership, and execute with precision, driving sustained success.

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Startups

How to Manage Your Startup’s Finances More Efficiently

No matter how groundbreaking your product or service, your startup could quickly be on shaky ground without proper financial management

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managing your startups finances

Running a triumphant startup requires juggling numerous responsibilities. From managing operations and coordinating with team members to developing innovative marketing strategies and nurturing relationships with clients, the to-do list seems endless. (more…)

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Startups

5 Strategic Power Moves to Successfully Build Your Empire

Transitioning from idea to empire is a journey of strategic planning, execution, and constant evolution

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how to build your empire

The journey from a fledgling idea to a thriving empire is both exhilarating and daunting. The Startup Launchpad is not just a process but also a strategic framework that enables visionary entrepreneurs to become market leaders. This framework comprises five power moves, each a critical steppingstone in building a successful business.

These moves—Ideation, Business Plan, Online Presence, Strategic Marketing, and Launch and Growth—are the blueprint for turning aspirations into achievements. (more…)

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Startups

How to Avoid Startup Clichés and Buzzwords When Pitching Investors

Using jargon can make you sound like you’re trying to fill space instead of providing meaningful data

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How to pitch investors better

Entrepreneurs frequently seek startup funding through a variety of channels. Yet, none seem as challenging as successfully pitching to experienced investors. After all, investors are pressed for time and eager for opportunities. These characteristics make it challenging to motivate them, especially if you’re bombarding them with a pitch full of jargon. (more…)

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