It can happen to the best of us. And let’s face it; with small business often comes big risk, and often difficult financial decisions. There may be a time (or maybe it’s happening now) that you’re finding your business strapped for cash and you’re in need of some quick decision-making to try to brave the storm. Fortunately, we’ve got a few tips that might just help you stay afloat.
- Reassess the budget. If you don’t have a budget, immediately is the time to start. Pay close attention to where your cash flow goes and what your monthly mandatory expenses are. If there’s anything you can do without (even if just temporarily), chuck it, and calculate the savings to help get you through.
- Try to be objective. It’s hard when your business is your passion, your life’s work, your precious baby. But to succeed, it’s important to take a step back and look at the business as if it weren’t yours to get a realistic sense of where the “strapped” is coming from and why. If you’re not able to, find a trusted third party who will tell you like it is (and listen to them).
- Identify and resolve financial problems as early as possible. By staying on top of financial issues (perhaps with an accountant or banker), it’s much easier to resolves issues before they get out of control and too big to handle. Stop the bleeding at the source and try to move on and learn from it.
- Take a second look at your debt. If your small business has a loan, see what is short vs long-term. Are you able to increase your long-term debt to cover short-term debt? Debt in general can be a scary thing, but take the time to discuss options with your accountant and what might make sense and be doable for you. It doesn’t always have to be a permanent solution.
No one likes that strapped feeling, and it can be tough to find your feet and get ahead again. When in doubt, consulting a professional (while not cheap), can help give insight and lend a hand with all the above tips to support your business through hard times. It may still be difficult, but at least you can rest easy knowing your choices are the right ones. Many accountants and financial advisers are small business owners themselves, after all! If you contact our offices, there’s a good chance we can point you in the right direction of finding professional help.