How to Keep Your Business Going Even During the Hard Times
Business is full of cycles: hiring cycles, growth cycles, buying cycles, and slow cycles. Cycles provide predictability, reliability, and opportunity. When business owners know what’s coming down the line, they can better prepare for unexpected events.
Business is full of cycles: hiring cycles, growth cycles, buying cycles, and slow cycles. Cycles provide predictability, reliability, and opportunity. When business owners know what’s coming down the line, they can better prepare for unexpected events. Cycles provide a lot of stability in business. But sometimes, no matter how hard you try, cycles spiral out of your control and you may find yourself without the cash flow you need to continue to stimulate your business. Sometimes, you need to find ways to just keep your business going. Growth can wait until another day. Here’s how you can keep your business going even during the hard times.
Plan For it
Every business plan needs a contingency. Even the most successful businesses need to have a rainy day fund. If you are just starting out, that might be easier said than done, but you should still consider it. You might avoid making decisions about building up a fund for tough times because you don’t know how much you need to stash away. If that’s the case, take some time to figure out what a skeleton operation would look like and start building up that fund now. Even a small amount of money put away a little at a time can help you during tough times.
Cash in Favors
If you find yourself without the cash you need to get over a dry spell, it might be time to reach out to your network and figure out who might owe you a favor or two. Favors can come in all shapes and sizes during times of need. For example, maybe your office supplier can run you a tab until you get back on your feet. Maybe they can hold your bill for a few weeks. You might also consider using up what you have before you order anything else. There’s no need to get rid of your staff during slow times; you can find other areas to cut first. Expenses that are consumable, like office supplies, are a great place to start.
Do the Bare Minimum and Pound the Pavement
If cash is short, don’t sit around fretting about the lack of money. Instead, hit the pavement and look for more work to ensure that this doesn’t happen to your business again. In the meantime, make sure your overall expense roster is thinned, as we just mentioned, and keep your travel expenses and employee outings to the bare minimum and only the most necessary things get your attention and money.
Get a Loan
Another option, that is not necessarily a last option for business owners, is to consider a merchant cash advance loan. These loans are designed with business owners in mind, are meant to make it easier for business owners to get from point A to point B without fear of losing your business. These services rely on your entire financial situation, not just your credit or your business’s credit in order to determine your eligibility for a business loan.
Regardless of the path you take, or if you decide to use a combination of these options, the point is to have a plan that will provide you with a way out, or on to the next big thing.