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Why Your Business Sometimes Needs an Uncomfortable Leap to Get ‘Unstuck’

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Why Your Business Sometimes Needs an Uncomfortable Leap to Get ‘Unstuck’

When your business is “stuck” in neutral, sometimes you have to take an uncomfortable leap of faith to get your business moving again.

I have been working with a business that is basically “stuck” The business is doing OK, about break-even. But it is not growing and doesn’t have a current path to correct itself. That said, it has a great business opportunity in front of it, but investors do not want to fund the business, largely because the historical unit economics are not as profitable as the future unit economics projected, and that has investors feeling that it is a leap of faith farther than they are willing to jump.

They are looking at opening a new location, which will materially propel the business to new heights, maximizing revenues, profits and unit economics while proving it can successfully open a new market. The business needs $1 million to comfortably open this location but has only $500,000 to work with today. But sometimes a business has no choice but to take a big risk to get it “unstuck.”

Doing nothing is clearly the safest path in this scenario, as it will not put the company in a materially negative cash position , in terms of sources and uses of capital. Why take the risk of signing up for a project that you know will be 50% underfunded out of the gate, on the hope you will find the extra needed capital in the next few months to fill that gap; a financing that may never happen.


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