"My service-based business is strapped financially so I want to get investors. How do I go about this?"

Written By Koddo & Co.

First of all, I know how stressful being in this position can be.

Tight cash flow induces sleepless nights, anxiety and more. I have been there before and can totally relate to how you're feeling.

Next, consider, why do you want to go for investors?

If it's solely because you think getting an investor will solve your cash flow problems, that's not necessarily the best reason because a lot of service-based businesses aren't attractive to investors and it would be a waste of your valuable time to spend a lot of time going down this road.

If it's because you want to scale your business, that could be a good reason, and there are still many caveats.

Lastly, does your business model work?

And by that I mean, do the services you sell and how you price them, cover both what it costs to deliver the services as well as covering your overhead expenses with enough to have profit leftover?

If your model doesn't work, there are other solutions to your cash flow problems to explore first. These could be changes to your pricing, payment terms, collections policies, and more.

There are also other channels of funding, like grants, subsidies, and debt financing, as well as the solutions I mentioned above, that could be a more appropriate way to ease your cash flow worries.

If you're in this position and want to find out how I can solve your cash flow woes, book a complimentary call with me and let's chat!

I'm here to help.

Koddo & Co.

Jacinthe is a Canada-based fractional CFO and financial literacy advocate. She is the CEO of Koddo & Co. and co-founder of Tandem Innovation Group. As an Interior Designer turned serial business owner with 6 businesses started, and 2 growing successes, Jacinthe has learned the hard way about the ins-and-outs of business finance over the last decade. She is now on a mission to increase financial literacy in creative-brained owners and bring stability to their businesses, by shedding light onto the blackhole of their finances.

Her portfolio includes professional services agencies and firms, retail, e-commerce, personal services, and death care companies, with some calling her their financial fairy godmother. She’s particularly passionate about pricing, profitability, cash flow management, and helping her clients scale themselves out of the day-to-day operations of their businesses.

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