In the last year, many businesses have suffered financial setbacks, and this has been because of the pandemic situation. Some businesses have been able to thrive through the pandemic, while others have not been so fortunate.
For those who have taken a hit, there are steps they can take. These steps can also be taken by businesses who have suffered a financial setback for any other reason.
#1: Make cutbacks
While there will still be a need to make spending in some areas, it is still important to find places where costs can be reduced.
So, the business owner might want to seek a discount from their supplier, for example, or they might want to switch suppliers altogether if cheaper prices can be found elsewhere. They could also switch utility and insurance providers, cut production costs, and make changes to staffing, perhaps by reducing the hours of their full-time staff. Not every cutback will be ideal, especially when it comes to reducing employee wages, but in the short term, it might be needed.
#2: Increase marketing
This is one area that needs to be prioritized, as the more people that are reminded about the business, the better. In some cases, the business owner might continue working with their outsourced marketing partner, as this will give them leeway to focus on other aspects of their business. Some, including Shinning Digital, will also offer free auditing and discount packages, so it is worth finding out what might be on offer. In other cases, the business owner might need to focus on low-cost marketing methods. Social media posts, email newsletters, and free advertising on business sites are just some of the ways a business can be marketed cheaply.
#3: Find income sources
Some businesses have been able to source help from the local government during the pandemic, including business grants and income support for their employees. Details of some of the help thus far made available can be found at the SBA. These grants may not be applicable to those suffering financial setbacks due to reasons outside of the pandemic, although it is always worth researching similar help that may be available.
Other sources of financial help can include bank loans and credit cards. Admittedly, these aren’t ideal, but if the business owner can find something with low or zero interest, and they have hope that profits will be made relatively quickly, it is worth considering the option.
Crowdfunding is another way to raise money, and business owners could offer small shares in their company or discounted offers as incentives to encourage people to help financially. Now might also be the time to sell some of the company’s assets, as anything sold would help to recoup back some of the money that had been lost.
Nobody wants to experience a financial setback. It can be stressful to the business owner, and problematic for the running of the business. However, it is important not to panic. There are often solutions to the problem, so if you’re experiencing difficulties right now, consider our suggestions and look for sources of help where you can.