I always find it sad to hear about an entrepreneur on the verge of losing their business.
I’ve been there. When you’ve put years into something, the feeling of loss can be devastating.
A nearby engineering firm used to employ close to 10 people. Last time we talked to them, they were down to two clients and two employees; part-time. They don’t even have a website. When times were good, they sold on the strength of their network and referrals. Now the owner was willing to spend some money on marketing to try to reach new opportunities.
They just found out they might lose one of their last clients.
The owner was despondent.
He needs clients desperately but is in the position of having no cash to pay for marketing or sales. He said, “It is a chicken and egg situation.”
In reality, it is a “We don’t have a chicken or an egg situation.”
The market has neither chickens nor eggs. The entrepreneur is relying totally on luck and external factors to turn things around. Other than hustle and hope they have nothing.
They are the walking dead.
Obviously, you want to spend on marketing and sales before you get into this situation. However, when you are losing money, the tendency is to cut back to last a bit longer. This approach is natural but is also flawed.
The answer is not always spending on marketing (or sales) though.
I’ve seen totally dead real estate markets. Nothing was moving.
If no one is buying, you don’t have a viable market for your product or service. Your only choice is to find a viable market or find a different thing to sell.
Only when you’ve solved that problem does it make sense to spend on marketing.
Either way, you have to move fast. Walking just won’t do.