Five Ways Your Company Can Pull Through A Financial Slump
No matter how well thought out your company’s finances are, no matter how solid your business plan is, every company runs up against hard times. When the financial waters get rough, don’t panic; there are things you can do to right the ship, and survive the storm. Below are a few things you can do to help your company survive a financial crisis, and recover after it’s over.
Assess the Situation
Instead of getting caught up in panic, sit back and take an inventory of the situation. You might find out that while it seems like you’re sinking, you’re just being tossed about a bit. Finding the cause of the situation, assessing where you are, and deciding where you need to be, and over what period of time will help you get a good picture of the situation as it is. Don’t overreact and keep a cool head when it comes to safely investing your company finances.
Prioritize
Prioritizing which expenses need to stay, and which you can cut back on for a while is essential to getting out of a financial mess. If your personal finances suddenly took a hit, you would probably put “pay bills” at the top of the list and “eat out on the weekends” at the bottom. Approach your business finances in a similar manner, deciding what can stay and what needs to go.
Negotiate
Many vendors, lenders, and other places to which you routinely owe money will be more than happy to negotiate with you on payments if you run into a tough spot. Don’t be too proud to ask for a redesigned pay schedule for a month or two until you can get your business back to financial security. Make sure you will be able to afford all company loans and make a plan before negotiating.
Seek Out Assistance
There are many government programs, as well as private funds, that help businesses with finances. For instance, you might be eligible for a grant if you use green energy at your office, or you may qualify for a small business loan through a credit union. Look for opportunities where you can obtain assistance and use that assistance to get your company back on smoother financial waters.
Business Intelligence
Many companies find themselves in financially stressful situations because of a lack of business intelligence. Business intelligence doesn’t refer to what you know about business, but rather the information you’re able to obtain about how your business is really functioning. Companies like Domo http://www.domo.com/discover/business-intelligence-solutions, help businesses obtain real time information about their business, so they can make corrections as soon as problems or issues occur instead of having to find out when a crisis hits.
When it comes to your company, staying out of uncertain waters is what is best, but sometimes it is unavoidable when a financial crisis hits. Don’t panic and use these tips to service your company to the best advantage. The key is to plan for the future and make your payments more manageable.
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Category: Business
