20 Tips To Navigate Sudden Funding Losses

Forbes

09-05-2025

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Whether due to shifting market conditions, funding freezes or a simple change in priorities, a sudden loss of funding can disrupt even the best-planned business development or research initiatives. While this can feel like a major setback, it doesn't have to signal the end of progress.
In moments like these, taking strategic action to reassess and move forward can turn a funding loss into a pivot point for innovation. If you find yourself facing a sudden funding loss, follow this advice from the members of Forbes Business Development Council to regain momentum and move forward.
One should avoid a knee-jerk reaction and first assess the facts. Is the funding truly lost, or could minor tweaks help requalify it? Don't assume the decision is final. The first step is to diagnose the root cause and explore if there's a salvage opportunity. Once the "why" is clear, determine next steps—this may include repositioning, adjusting scope or seeking alternative funding sources. - Janesh Janardhanan, Frost & Sullivan
It's important to understand why funding was cut and how the project aligns with current strategic priorities. In my experience, funding should never be taken for granted—always have a plan B. In this case, it's worthwhile to reassess the value and cost and to explore scrappier, more cost-effective ways to achieve similar outcomes. I've often seen roadblocks spark innovation in unexpected ways. - Jani Hirvonen, Google
Some first steps to take include reforecasting the roadmap based on available funding, adjusting the burn rate and transparently communicating the situation to stakeholders, such as your team, investors or partners. Also, explore alternative funding sources like grants, partnerships or bridge funding—and consider repackaging key initiatives to attract new investment or sponsor support. - Vinit Mojes, EY
When you lose significant funding, it's time to reassess your current financial situation, priorities and processes. This involves evaluating what resources you still have and identifying which aspects of the project are most critical to maintain. Communicating transparently with your team and stakeholders is essential. Then, refocus, reimagine and take your first steps toward success. - Scotty Elliott, AmeriLife
Reach out early and often. Whether it's mentors, advisors, industry peers or your team, don't try to course-correct alone. Collaboration costs nothing but can be worth everything. A quick brainstorming session or honest conversation might uncover resources, workarounds or support you hadn't considered. You never know who's willing to help until you ask—and wants to be part of a solution. - Bryce Welker, The CPA Exam Guy
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The first step is to assess the impact of the funding loss: Identify affected activities, quantify the financial gap and evaluate consequences on timelines and goals. Then, reprioritize the project and seek alternative funding sources, while maintaining clear communication with the team and stakeholders. - Umberto Cavallaro, AscoService
Constraints often lead to innovation, and this is where leadership has to be decisive, resourceful and transparent. Figure out what's a must-have versus a nice-to-have. Engage key stakeholders, cross-functional teams, partners or even customers to explore alternative funding sources. Also, explore creative partnerships that could fill the gap. It's about shifting from a scarcity mindset to an opportunity mindset. - Olga Lykova, monday.com
When your funding gets cut, competitive intelligence is a budget pivot pro move. There are no hard costs required to collect the websites, LinkedIn page posts and ad creative that other brands are running. You can view this information on the ad libraries of Meta, Google and LinkedIn. Compare how you and your competitors talk about your brands and your solutions. Differentiation opportunities will present themselves. - Barry Reicherter, Finn Partners
When funding cuts hit, start by evaluating your cash flow and securing critical operations to keep your project afloat. Then, seek bridge funding or streamline efforts to preserve progress toward your goals. - Vivek Vishal, Honeywell
Take a pulse on the marketplace and customer impact. Review the impact of the budget cut on major deliverables and assess customer plans. Before reaching out to internal and external stakeholders, it's helpful to first outline alternative scenarios, for example, descoping features to focus only on the top-priority, high-impact ones, or planning a staggered release approach with fewer resources. - Srinivas Vadhri, Skydo
When funding drops, the first move is to reassess priorities through the lens of strategic alignment. Focus on what still supports your core goals with the resources you have. Tighten the scope, engage your team and get creative. A clear sense of purpose can turn constraints into momentum. - Michael Fritsch, Smarter Operations
Review your priorities at hand and then figure out a way to self-fund the most critical ones through the existing business. Once you reduce your priorities, you have an option to reduce expenses associated with those shelved projects. - Ruchir Nath, Dell Technologies
Identify which parts of the project matter most. If you figure out which pieces are directly tied to the main goals, you can shift your time and resources to those first. You can also look into changing the timeline to fit the current situation better. It's a practical way to keep moving forward and allows time to rethink the overall strategy if needed. - Max Avery, Digital Ascension Group
Accept that tomorrow is never guaranteed, especially in business development. When funding disappears, don't just react—reframe. The real cost isn't always in the dollars lost, but in the opportunity left on the table. Rally your allies, sharpen the business case and make it clear what's at stake. In business development, conviction is often the bridge between a setback and a comeback. - Alexander Masters, MBA, BIDA, Siemens
Do a team-wide debriefing to clarify what led to the loss of funding, and if the possibility still exists to go back and revive the conversation. If it does, then find out how to approach this conversation. Who needs to be involved? What do you need to present or showcase to get back in the ring? If these questions are not possible, are there other funding avenues that you can explore? - Mustansir Paliwala, Zomara Group
The first step is to revisit and prioritize objectives based on available resources. Conduct a review of the project's core goals and identify the most critical activities that align with the business's strategic vision. By focusing on high-impact and low-resource initiatives, you can maintain momentum, preserve value and position your business to adapt while seeking alternative funding sources. - Salice Thomas, Wipro Limited
The first step is to reassess the project's key parts tied to your goals. Use "first principles thinking" to find cost-effective, creative solutions that keep things moving forward, even if they're less scalable. Communicate with your team, explain the new direction and keep everyone motivated. With budget cuts, focus on progress, not perfection—sometimes good enough is enough to keep advancing. - Jayant Walia, Gainbridge
Review project goals through an impact analysis to understand how the funding gap affects objectives, timelines and deliverables. Identify essential components and determine what can be scaled down, postponed or adapted—without losing core value. Explore alternatives—such as partnerships, grants or budget reallocations—to complete the project or research. - Ali Faizan Rizvi, Mint Gateway
Reassess and prioritize initiatives that align with strategic goals and offer high ROI. Explore alternative funding—partnerships, grants or internal shifts. Communicate transparently with stakeholders and use the challenge as a catalyst for innovation and focus. - Rahul Saluja, Cognizant
If funding takes a hit, start by stepping back to reassess. Focus on what's still possible with the resources you have. Are there leaner, more creative approaches you can take to reach your goals? Funding loss doesn't have to mean giving up; it can be an opportunity to test new strategies and refocus efforts to efficiently win new business or conduct research. - Raviraj Hegde, Donorbox