Think of the gasoline engine. In order to operate, the engine needs gasoline and air. Without these two, no matter how great an engine it may be, it ain’t gonna run.
Your business is like a gasoline engine, only the gas is PROFIT, and the air is POSITIVE CASH FLOW.
Back to the engine. If all the pistons are broken, no amount of gasoline and air are gonna help. The engine just won’t run.
In your business, if your business model is broken, that is, you are flat out losing money, it’s possible no amount of additional funding is gonna help. Like the gasoline engine with the bad pistons, your business, if it has bad “pistons,” no amount of throwing money into the business will help. You’ll just be throwing good money after bad.
First, you must take a hard, realistic look at your business. If the business is fixable, and the fixing takes money, then go for it. But make sure you know what you’re about.
Sometimes it’s better to admit defeat and move on to something else. Throwing money at an unfixable business is just wasting money, time, and effort.
Walking away from your “baby,” in which you’ve invested so much, is difficult, but sometimes “discretion is the better part of valor.”
Sometimes I have to tell my clients that more money, more funding, is not the solution. I only want to provide solutions and not the furtherance of a failed idea.