No successful business has never faced a struggle in its entire run. At some point, it has had tons of debts and lay-offs and might have been on the verge of closing down. And if you think that your struggling business cannot be saved, remember this: it is still possible to make a U-turn, get up, and keep the business running. Though, you have to understand that it is a case-to-case basis situation.
You may be having a hard time when to start, as dealing with debts and some possible legal disputes can be overwhelming. Nevertheless, there are some pointers that you need to do to ensure progress. Below are some essential things that you need to keep in mind:
List down all your debts
Since you acknowledge the fact that your business is struggling financially, you need to get a good picture of where you are standing right now. When you have an overview of the problem, you may find the spots that can be easily addressed and the issues that you need some help with. So, list down all your debts, their timelines, and their costs. Some of these debts may include your business credit cards, dues with your suppliers and partners, and business loans. You will need to make sure that your credit rating is in good shape, so you will be able to borrow money again.
When coming up with a recovery plan, you need to be realistic. Do not expect that you will be able to recover in the next few months if the sales have slumped and you are facing serious legal disputes with your competitors. When you are too optimistic about your future, you may tend to overlook plans that are grounded on reality, thus causing more failures and missed expectations in the long run. That is why you need to be honest with yourself, your partners, your suppliers, and your team members.
Boosting the sales of your company is undoubtedly already part of the plan. However, you need to cut corners concurrently. That will allow you to maximize your earnings and even bring more money to the company. One way of reducing costs is by selling off unnecessary equipment and going for leasing. Moving to a smaller office will also save you a lot, as your utilities and rental costs will also go down.
Change your payment terms
Another way of bringing your business back into good financial shape is by changing the payment terms of your debts and dues. For instance, you may want to make payments for your membership marketing services application or subscription yearly instead of monthly, as this will help you save in the long run. It is also worth considering getting a refinancing scheme for your existing debt so that the interest rate will be new — and this time, it could be lower.
When you see positive changes to your current business situation, do not rejoice yet. You need to keep the measures going until you are fully recovered. Better yet, embrace these positive, new habits to avoid similar problems happening in the future.