What to Do When You Run Out of Money as a One-Person Business?
Aug 27, 2025
Running your own business can be exciting, empowering, and full of opportunities. But what happens when the money dries up? For many self-employed entrepreneurs, freelancers, and solo business owners, running out of money is one of the biggest fears. The truth is, it’s not a matter of if this will happen—it’s a matter of when. Cash flow challenges are part of the entrepreneurial journey. What separates those who succeed from those who quit is how they handle this situation. Not in the mood to read this? Watch our video below instead!
In this article, we’ll explore three practical steps you can take when you run out of money as a one-person business. These steps are designed not just to help you survive but to position you for long-term growth.
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Step 1: Reduce or Eliminate Unneeded Expenses
The first step when money runs out is to take a hard look at your expenses. Go through every item in your business and personal life and identify what’s truly essential. Ask yourself:
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Do I really need this subscription, tool, or service right now?
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Can I downgrade, pause, or cancel it temporarily?
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Can I find a more affordable alternative that serves the same purpose?
Every dollar you save here is valuable fuel you can reallocate to areas of your business that directly generate income. By cutting unneeded costs, you create breathing room in your cash flow.
Step 2: Invest Excess Cash Flow Into Advertising for High-Margin Products or Services
Once you’ve freed up money by reducing expenses, the next step is to put that cash to work. Instead of letting the savings sit idle, direct it toward advertising your highest-margin products or services. Why? Because high-margin offers give you the best return on investment.
Even a small advertising budget can make a difference when it’s targeted strategically. For example:
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Run ads promoting a service package that has the best profit margin.
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Double down on a product you know delivers strong results and customer satisfaction.
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Test ad platforms where your ideal clients are most active.
This reinvestment turns your cost-cutting into a revenue-generating engine, helping you pull out of the money crunch faster.
Step 3: Book a Consultation With an Industry Expert
The third step is often overlooked but incredibly powerful—seeking guidance. When you’re low on funds, the last thing you may want to do is spend money on a consultation. But the right expert can save you time, prevent costly mistakes, and provide clarity on how to move forward.
An industry expert can help you:
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Identify overlooked opportunities for growth.
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Spot weaknesses in your current strategy.
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Offer proven methods that accelerate results.
Think of this not as another expense but as an investment into your business’s future. The insights you gain could be worth far more than the consultation fee.
Summary: Three Steps to Take When You Run Out of Money
Running out of money doesn’t have to mean the end of your business. Instead, see it as a turning point. By following these three steps, you can transform a challenge into an opportunity:
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Reduce or eliminate unneeded expenses to free up cash flow.
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Invest the savings into advertising your highest-margin products or services to generate revenue.
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Book a consultation with an industry expert to gain clarity, avoid mistakes, and accelerate growth.
These actions not only help you weather the immediate storm but also set your business up for long-term resilience and profitability.
Final Thoughts
Running out of money as a one-person business isn’t the end—it’s part of the entrepreneurial process. Every successful business owner has faced this situation, and many have come out stronger because of it. The key is to act decisively, invest wisely, and seek guidance when you need it most.
