The Black Mark: Personal Finance Problems Which Could Stop Your Startup

For the most, it’s essential to keep your personal life and your startup separate. Business and pleasure don’t mix well. A scandal at this stage could spell curtains. So, the chances are that you keep your personal life out of the office. It’s usually the best route to take.

But, such separation life isn’t always possible. Entrepreneurs can’t escape the fact that who they are is linked to what they’re doing. Your personal background could have a massive impact on your success or lack thereof. For example, a bad personal meeting with a future business associate could scupper a deal. Equally, a bad credit rating could halt progress before you even get going. And, that’s what we’re going to look at here.

You may assume that personal finances wouldn’t have anything to do with your enterprise. But, think again. Here’s how your own money problems could cost your startup.

Failure to get a loan/backing

Let’s not beat around the bush; no startup can get off the ground without money. You’ll have a hard time convincing anyone your business is worth investing in if you’re drowning in debt yourself. Not to mention that yet another loan could lead to more trouble. Even if you manage to get a loan against the business instead of your name, it’s unlikely you’ll meet the repayments. As such, your company could end up filing for bankruptcy before you even start.

Lack of faith from the business world

Nothing stays secret for long in the business world. If you’re drowning in debt, the businesses in your circle will soon know about it. And, once they do, you’ll have a hard time getting a deal from any of them. Why would they trade with an entrepreneur who can’t handle money? That would be financial suicide. If your company goes bust, they lose money. It’s as simple as that. Instead, you’ll find that all those businesses turn their backs on you. And, when they do, you’ll soon find yourself in trouble.

Is there anything you can do?

Luckily, there’s plenty you can do to get the situation under control. You want to develop a way to clear your debts as soon as possible. The faster you’re clear, the sooner you can enter the business world on stable footing. Many would choose to turn to debt consolidation to tackle the issue swiftly. But, that might not be the best plan for you. After all, every penny counts when you’re starting out. You can’t afford insane interest rates right now. Instead, consider the debt relief programs offered by companies like the Bank of America. This way, you can develop a plan to clear debts in a realistic time frame.

It’s also worth being completely open about your situation. Speak about how you’re dealing with the issue. As mentioned above, these things have a way of coming out in the end. So, beat the gossip by sharing your story. You could even become an inspirational figure for other entrepreneurs out there.

How To Survive A Cash Flow Crisis


Cash flow is the total amount of money going in and out of your business and is a big problem for most small business owners. If your sales projections weren’t quite what you expected, or you have a customer or client that hasn’t paid you on time, it could mean that you don’t have enough money to cover the day to day expenses of running your business. This, of course, is a big issue and could result in your business going under. If you want to avoid this possibility, then ensure you read the tips below.

Cut Down On Non-Essentials

One of the first things that you should do when you have little money coming into your company is to cut down on expenses that aren’t bringing in profit. If you have a business landline but always have customers and suppliers calling your cell, why not consider having it cut off? It won’t save you massive amounts of money, but it’s money that could be better spent elsewhere. The same goes for any services that you may be subscribed to.

Push Back Bills

It’s unlikely that you’ll be able to put off paying for things like your rent or mortgage, but you may be able to negotiate an extension with your suppliers, especially if you have a good relationship and have always paid on time before. In fact, if you seem to be having a cash flow issue the same time every month, you may want to ask them to push back you due date permanently, and pay a couple of weeks later from now on instead.

Consider Increasing Prices

We live in a world where everything is slowly getting more expensive, and that should include your products and services too, especially if you’re having cash flow issues. However, you don’t want to just raise prices on a whim; You need to be strategic about it. Don’t increase your prices by massive amounts, and try to keep them below the prices of your competitors. If you increase your prices by too much, you’ll risk losing customers to cheaper competitors. Visit for advice on how to raise your prices.

Give Them Incentive

If your cash flow issues are caused by customers making late-payments, you may want to consider offering a discount to customers who make their payments early. However, you may find that this costs you more money that you’d like, so you could also consider doing the opposite, and make your customers aware that they’ll be charged extra for making a late payment.

Get Some Credit

If you’re really strapped for cash, then you may want to consider applying for a business credit card or a working capital loan, to help you cover the day to day expenses of running your business, as well as payroll and marketing. compares some of the best working capital loans, to help you find the best one for your business.

Once you manage to get out of your cash flow crisis, you need to make sure to come up with a plan on how to avoid any future financial problems.