There is nothing worse for a business owner than to see the hard work he or she put into his work go to waste. And today’s circumstances have inclined the balance towards businesses closing everywhere you look.
As many have closed, other companies have turned to small business financing like Camino Financial’s to secure operations for the time being. But this solution is definitely not for everyone and will depend entirely on the business states.
Though you should consider small business financing to help you out to stay on business, first, you should take a hard look at what you are doing and adjust your operation accordingly. These are some of the actions you can take to avoid the final goodbye.
Assess the state of your finances
If you already owe a lot of money, you could get more, but it wouldn’t be the best way to go. After all, you’d be working just to pay your debts and, keep in mind that an unpayable debt doesn’t help you grow, and becomes bad debt. Take your time to balance the sheets, see how much money you owe, how much money is owed to you and how long can you endure. Include future earnings but be realistic and take into account that you are not the only one going through a crisis and maybe those prospects might never materialize.
Cut back your fixed expenses
Maybe it’s time to stop paying for a big email license and take advantage of other services that you can use for free or cheaper. When money flows, expenses grow, so it’s time to reduce them. You can cut back in rent and send everyone to work from home if your operations allow it, stop paying gas or traveling expenses that you might not be using. Every company has its own circumstances so take a look at yours and decide from there.
This goes for your supply chain, your lenders and even your operators. Once you know where you stand, explain them the situation and try to come to a better deal that lets your creditors know that you will pay them but you’ll need some time. If you have big suppliers, you can even ask them for credit in working material. There is no deal that can’t be renegotiated, so be smart and ask for help.
Take care of your credit history
It’s hard but in a crisis that could send you to bankruptcy you need to be on time with you outstanding debts. This way, lenders will know you mean business and that you have in good faith to pay them.
Use financial programs
It can be either a government, a philanthropic or a private program, the goal is to find the funds to keep your operation safe. Research your choices for small business financing and choose the one that will help you keep working and, above all, to protect your employees, because they will also need you to stay afloat. Beware of frauds and scams that could leave you in a worst state. Do your homework and make sure that the funds you are tapping into are clean and legal.
Reevaluate your business model
You are an entrepreneur at heart and if there is one thing that defines someone like you is the ability to find opportunities in a crisis. So, if right now your business model is not working, reshape it. Use the assets you have to tap into a new industry, detect opportunities that you can pursue and look for a different way to keep afloat.
As an entrepreneur, you have an innovative and resilient mind, so now is the time to muster all your strengths, to surround yourself with the right people and surf the circumstances. Keep in mind that crises don’t last forever so, if you have a chance to survive it, take it, think about the future of your company way past the crisis and work towards that. What changes are you planning on implementing for the survival of your business?