The year 2020 was incredibly tough for all types of businesses. Some companies were able to get themselves through hard times, while others are still struggling. If your business is experiencing financial difficulties, here are five options to focus on.
1 . Review Your Budgeting
When your business is experiencing financial trouble, the first thing you need to do is review your budget. Consider how your budgeting could be improved? Are there any new software tools you could use? A few popular budgeting and forecasting tools include:
- LivePlan: Using this budgeting and forecasting software, your business can improve your budget and plan for the future. The tool also includes performance tracking features, and business planning features.
- Budgyt: With this cloud-based budgeting tool, businesses can simplify the budgeting process. It’s a collaborative budgeting solution that offers accuracy, and plenty of useful features.
- Cut Expenses Where You Can
When you’re reworking your budget you should focus on where you can cut expenses. Consider areas where you can make cuts, without compromising the efficiency of your business. You might be able to find cheaper suppliers or outsource certain projects to save money? There are many ways to reduce your business costs, and improve your financial health.
- See What Financial Help Is Available
Many businesses are still struggling due to the effects of the coronavirus pandemic. If your company needs financial support, here are a few places to start.
Restaurant Revitalization Fund: The RRF grant is available for bars and restaurants that were badly affected by the pandemic. Businesses can apply using the SBA application portal online. Applications have been open since May 3rd, 2021.
COVID-19 Economic Injury Disaster Loans EIDL: In response to the COVID-19 pandemic, Congress created loan packages for companies. Both nonprofits and small businesses can apply, and access loans at reasonable rates. For more details, see the EIDL loan application.
- Consider Your Business Assets
When your business is struggling financially it’s a good idea to review your business assets. Do you have any stock that you don’t need? Perhaps you invested in equipment that you do not use? You might consider selling unwanted assets, to improve your financial situation. Freeing up some cash could be just what you need to get back on your feet.
- Talk To A Financial Advisor
If your business is still struggling, and you’ve run out of ideas, you should talk to a financial advisor. A financial advisor can help you to assess your situation, and figure out your best options moving forward. You can access advice about making savings, and boosting your profitability. With expert support, you can get a clear visualization of your finances.
Perhaps you feel you’ve exercised all your options and you would like to close your business down? In this case, you may need to seek advice about LLC Dissolution. It’s important to get the legalities right when you are dissolving a company.