Very often we process requests from small and medium business clients that would like to hire us but have cash-flow problems.
It makes me sad, not because I pity them, but because it means we were too late. We didn’t get in front of them fast enough to get them the help they deserve and need.
Fortunately there are some ways, even if you are in a downward spiral, to get the help you need.
Start Now – Pay Later
One way we often suggest, and if your cash-flow situation is temporary, we can be persuaded to start work now but forego the initial deposit.
The entire process is simple. We usually will suggest a payment structure that will let you spread out the cost over a period of time with milestones.
What we pay attention to however is if you can afford media spend at all.
When you hire us, we are happy to stall a payment for a period of time for our services. However we can’t offer loans, and front money for materials. Similarly we can’t buy advertisement space or pay for social media ads for the duration. This will still need to come out of your pocket in some way.
Another way to hire us is Revenue Share. As an option this solution isn’t just limited to businesses with cash-flow problems, but it works exceptionally well for them.
The Revenue Share payment-model has also worked fantastically well for our clients that were initially uncertain about the efficacy of our work.
In short, with Revenue Share we offer to provide our strategic and tactical services in exchange for a cut of the generated revenue.
As a simplified example, you decide you want to grow your revenue by X% annually. We devise a strategy to execute this and take a set share every month from the additional revenue our strategy generates.
This is a win-win for both sides:
- We are highly motivated to do the best we can for you. The bigger you grow, the bigger the benefit for us.
- You see the impact directly and don’t need to front money you don’t have yet.
There is even a third hidden benefit: Both sides can immediately see when the strategy stops generating results and when you need a new one.
The hurdles for the Revenue Share solution are two-fold as well however.
- First, we need the project to be measurable so we can track our impact and tie it to the strategy we devised.
Those are the best projects anyways, if we can’t see we are helping, what good are we?
So unfortunately simple marketing collateral or re-design projects aren’t conductive to this model.
- Second, both sides need to trust each other and we require open books, access and communication from the client.
Of course just as with the stalled payment-plan, we also can’t front money for materials or media spend on your behalf. But we can do a lot even without media-spend, after all branding is more than paid ads.
Don’t Stifle Your Growth
So you can see there are ways to grow your business without fronting thousands of euro. One thing to always consider however is that you shouldn’t be in this situation in the first place.
When your business is growing organically, and everything is fine, that is the time to invest in growth aggressively. Waiting until you are in a death-spiral with little to no revenue and can’t afford any help shouldn’t be a place any business wants to be in.
As Mark Suster details in his talks and this article growing a business doesn’t mean it has to be profitable. This is especially true for Start-Ups and Small/Medium Enterprises.
If you need help growing your venture, or have to bounce back, drop us a line!
Also published on Medium.