Imagine you are in the ocean, you’re drowning and you are desperately hoping for someone’s help. There are several lifeguards standing nearby. Some even glance over at you. Why won’t they help? Your heart is racing faster and faster. Panic is setting in when you realize that help isn’t coming. Your arms are flailing churning up the water, but you can’t seem to keep your head above the surface. You go down again. You kick and flail harder trying to resurface. You can feel your energy sapping away. You panic even more because you know that you can’t keep this up much longer.
This drowning scene metaphorically is what is happening to many startups in this country today. Startups desperately need business funding. Without it, they never get their head above water and drown in disappointment and lost potential. Even well-established businesses need equity financing or commercial loans from time to time in order to expand or to get through periods of low cash flow. If they can’t get this money, they fail to flourish and could even perish.
You are not alone if you are a small business owner and you’ve been turned down for a business loan. In January, 2013, Ami Kassar reported in the New York Times that “If you’re trying to start a business today, you can almost forget about going to a bank for a startup business loan.” She further reported that “This situation hasn’t changed much in the past year, and we don’t see it changing any time soon — with a few exceptions. If you are opening a franchise outlet that is on the approved SBA. list or if you have solid personal collateral outside of your new business, you’ve got a shot at getting an SBA loan.
So is your small business being suffocated and choked off because of a lack of funding? Are you unable to assemble a management team or attract skilled workers? Is your lack of funds preventing you from creating a prototype that would easily demonstrate the economic potential of your idea? Are the lack of funds preventing you from being able to manufacture your product or create an effective marketing campaign? If so, you are like that drowning man I described earlier. You need to face facts. Like the drowning man, you are probably not going to get help from traditional sources, such as a small business loans, unless you have significant equity or if you have a rich uncle that will collateralize the debt. Now you can continue to try to find traditional solutions. Sooner or later, however, your resources will dry up and you won’t be able to keep your head above the water and your business will drown. The earlier you explore outside-the-box solutions, the better your chances of keeping your business afloat. Always keep in mind that it’s a race against time. Your resources are limited and your options are rapidly decreasing every day you fail to find an alternative solution.
So what kind of non-traditional solution can you use as a lifeline when you’re unable to raise business capital? I would strongly recommend teaming up with other entrepreneurs that hold the missing puzzle pieces that are preventing you from realizing your business goals. Maybe you need retail space. If so, find a landlord that has a suitable property but who is having trouble finding a tenant. Remember, they like you, are like the drowning man. With no rent coming in, they are having to reach into their savings to pay the mortgage, property taxes and maintenance. Let’s say you need a skilled worker. At the same time, there are scores of people with the skills your require. Many of these workers are unemployed or underemployed. These workers are rapidly running out of unemployment benefits. They have mortgage and car payments. They need to put food on the table. These men and women are like the drowning man.
It’s obvious that traditional business lifelines are is short supply and that their supply is getting smaller with each and every day. As entrepreneurs, we need to look to each other for support. To throw out lifelines that will not only save them but ourselves as well. What is needed is a way to make these business connections. NewBusinessTrade.com was created for this purpose.
On NewBusinessTrade.com, entrepreneurs can create a listing for a New Business Trade (NBT). Narratives, pictures or movies can be used to describe their new business opportunity. This listing is also used to disclose both sides of the New Business Trade that they want to transact. On one side of the trade, they disclose what they need. Examples of what entrepreneurs might be searching for could include: research and development, services, materials, equipment, finished products, office space, retail space, manufacturing, warehouse space, or marketing. The person placing a listing on NewBusinessTrade.com also has to describe what they are willing to trade for in order to get what they need. This could include such things as equity, future royalties or a percentage of sales in their business. The type of New Business Trade that is listed, negotiated and finally agreed upon is only limited by the imagination of all the parties involved. Sure there are risks. But doing nothing is a guaranteed way to business failure.
In summary, novel solutions are desperately needed for startups that can’t get business funding. New Business Trades can be a lifeline to your business if you can’t get a loan or raise equity financing. Never give up on your dream to start a new business. There is always another way to accomplish your business goals. Connect now with other entrepreneurs on NewBusinessTrade.com, in order to find a mutually rewarding solution to your business problems.