Business challenges are real. At some point the failures made in your business will surface if you haven’t gotten ahead of them. Assuming you have a decent business underneath your failures, you may find yourself scrambling one day to find money to keep your business alive. You may get frustrated that banks, lenders and investors are tripping over themselves to help your business which probably says more about you then it does about them. Nobody wants to be a part of a problem they didn’t create. Everyone wants to be part of something success. Entrepreneurs that get into difficult spots can be blinded by their pride and ego which can create more problems and delay success.
Over the past 12 months, Aston Martin’s stock has tumbled more that 60% causing the luxury car maker to seek emergency funding for its business. Aston Martin has a turnaround plan that includes manufacturing 14,000 of their DBX sports utility vehicle by 2023 with more than 1,800 pre-sales booked enabling them to meet a requirement of obtaining separate emergency financing (that has a 15% interest rate attached to it). Even with a turnaround plan and evidence that it can work, borrowing additional funds and attracting investment capital has been difficult. There are multiple serious parties that have expressed an interest in providing cash to Aston Martin, but it won’t be cheap and could fundamentally change its future.
I think many entrepreneurs choose to bury their head in the sand and either outright ignore the seriousness of their challenges or put hope in a new idea that has no evidence of success. Fixing a business never gets solved by hoping that money will be the solution. Money can only help an actual solution get better results. Are you acknowledging the challenges in your business? Are you doing something specific about them that you can measure and adjust? Are you looking for funding to save your business? Do you know how any money borrowed by your business or invested in your business will be used to get a better result?