Being a small business owner, tough financial times happen and they sometimes happen unexpectedly.
Encountering a financial problem may be difficult, but they must be dealt with accordingly. And although there are many business brokers in Victoria that can help you sell your business when worse comes to worst, being prepared is always the key to resolving problems like these.
To help you get with the times, we’ve compiled some of the most useful tips that may help you in such situations.
1. It Pays to Have Cash
No pun intended, but in tough financial times, it’s good to have cash in store so any spending must be carefully considered.
Before deciding to buy that new equipment to upgrade, or maybe even hire a new staff, consider whether that move will eventually pay for itself. Don’t move to brashly to avoid unnecessary expenditures.
2. Manage Your Debts/Bills
We know that the last thing you want to see during tough times are the numerous amount of debts and bills piling up. However, this is a problem you simply cannot avoid.
By examining your debts and bills, you’ll at least gain knowledge on how to budget your funds into resolving this issue.
Find out whether your debt must be paid in whole, or can be deferred. As for your bills, know which closest to due date is so you can pay them accordingly.
3. Budget, Budget, Budget
Budgeting, or its more formal term, financial management, is always crucial in tough times. Having a good budget plan lets you find out if you still have room for some financial manoeuvring.
Moreover, if you carefully budget your small business’ funds, then you’ll know what you can afford and what you cannot.
4. Engage With Your Banker
Contact your bank and prepare for a financial review. Prepare inventories, income and balance sheets ready to be reviewed. Give all the necessary information and be honest about your financial situation.
If you’re having problems, your banker may be more than happy to give you a solution to get out of it.
5. Barrow Some $$$
Consider this as your last ditch effort. When you’ve done everything you can to save some cash, but still find yourself failing to generate enough money to continue your operation, it’s time for you to ask for help and borrow some cold hard cash.
Do your research and look for reputable loaning companies, such as a trusted bank, and look for any lending package that offers low-interest rates.
Sometimes, you need to borrow money to make money, so when all else fails, loan some.
