What do you do when the going gets tough? How you react to hard times can make all the difference in the success or failure of your business.
Do you get busy trying to solve the problem? Do you ignore issues or simply patch them up with no regard as to keeping them from getting worse? Do you just quit?
Following are some common problems small businesses face and practical tips for pushing through.
Strapped for Cash
There are several reason why a business could be strapped for cash, and the long term solution is different for each one. However, whether the cash flow issue is a result of poor sales, poor collections, unexpected expenses, or lack of money management and budgeting skills, the short term solutions are generally the same. A business merchant cash advance or line of credit can be used as a bridge until you figure out how to fix the problem long term.
Remember that both a line of credit and a credit card are going to take time to get into place if they are not there already, so really desperate times may require the cash advance. However, merchant cash advance rates are not cheap. So if you have to go this route, get to work on a line of credit or credit card to use in the short term next time if needed, then use the time a short term solution allows you to find the cash leak and fix it.
Many business owners do not realize how much work running your own business can be, especially in the beginning. They often try to do everything themselves in an effort to save money and speed up profits. This is noble, but it can bring on a quick case of burnout that is not good for the business or the owner. If this is where you are, try these tips.
Either shut down or find someone to delegate too quickly so you can get some time off.
If you have no one to delegate to, begin looking for someone to train immediately upon returning so that this does not happen again.
Look at outsourcing certain tasks such as bookkeeping and cleaning if you do not want employees.
Set systems in place to prevent burnout in the future. Maintain working hours as best you can, take a set lunch break every day, and be certain someone is in place so that you can take time off without shutting everything down.
Say “Sue” is out sick. Is Sue the only one that knows how to shut down the cash register? What to do now? Maybe she isn’t just under the weather. Maybe she had a baby or has some serious illness that will keep her out a while. You want to keep her on board, but now you have to find a way for her job to get done. As much as possible, everyone should know how to do at least two jobs. If Sue is out, does Sherry know how to shut down the cash register? If at least one other person knows how to do each job, it will be much easier to get through times when certain employees cannot be there. Cross-train as much as possible without sacrificing controls.
Where there is a will there is a way. If you are scrambling for a way right now, hopefully these tips will help. Be certain you cross-train or secure a revolving cash option, whichever is needed, for next time. For a line of credit and other financing options, Biz2Credit can help. Visit today to find out more.