Thursday, May 15, 2014

Paying Bills without A Profit!

Here is a subject that everyone hates – paying bills. More so, people who have just launched a business, and are not seeing a profit, can’t stand paying bills with no cash flow. Hey, it is understandable. That’s why tonight I want to talk about how to pay bills for your business before the cash is rolling in.

First, consider taking on a part-time job in your field before taking out a loan. This is the best way to avoid heavy interest payments and to meet new clients.  I knew someone who went into the cookie business. She had to work weekend at another bakery. She didn’t share her recipe, but she did take note of certain companies who put in regular large orders. When she didn’t need the part-time job anymore, she knew the clients already and called them to work new deals with her bakery.

Second, avoid selling stake. Yes, if you want to sell a small stake of your company to gain fast cash to pay bills for a year or two- do it. However, make sure you have an attorney ink the deal for you so there isn’t any baiting and switching going on via the buyer of the stake. You want to protect your interests and your input, something easily lost in stake sales.

You may have to take a loss on your P/L statement if neither one of these options is feasible. However, if you can – the first option is always the best option.

Until next time,


Coco the CEO 

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