How To Save A Business That Is In Financial Trouble

A lack of customers, increased overheads, and errors in budgeting are just some of the reasons why business owners get into financial difficulty. 

If your business is in financial trouble, you will understand the stress it can cause. The worst thing for you to do at this time is bury your head in the sand in the hope that your financial struggles will go away. There is a chance that your situation may improve but then again, your business may go under if you don’t do anything to save your company.

Consider the following suggestions and act upon them if your business is currently in financial jeopardy.

#1: Make adjustments to the way your business operates

Unfortunately, you may have to make a few changes to the way your business operates. When things pick up, you should be able to resume your normal operations but in the meantime, you might want to…

• Move to smaller business premises
• Slim down your workforce
• Carry out business tasks in-house instead of outsourcing

What other adjustments could you make within your business? Consider those that will help you save money and take the necessary next steps.

#2: Sell some of your business assets

Your business assets are items of value that your company owns. Assets can include office equipment, vehicles, machinery, and property. 

To improve your financial situation, you may have to sell some of your business assets so consider those items that you don’t necessarily need on a day-to-day basis. 

#3: Reduce your business expenses

If your business is in financial trouble, now is definitely the time to cut costs where you can. 

So, you might want to…

• Hire part-time staff or freelancers instead of full-time employees
• Find cheaper suppliers for your business essentials
• Switch to a cheaper utility company
• Ask your employees to work remotely
• Go paperless 

List all of your business expenses and if you can reduce any of them, do so at your earliest opportunity. 

#4: Step up your business marketing

If your business is struggling financially, you may be tempted to reduce your marketing efforts. However, this might not be the best time to do so as you still need to bring money into your business. 

Thankfully, you don’t need to spend a lot of money on your marketing as there are ways you can market your business for free or at a low cost. 

Check out these free and low-budget marketing ideas and implement as many as you can.

#5: Consider a CVA or IVA

If your business debts are spiralling out of control, a CVA (Company Voluntary Arrangement) or IVA (Individual Voluntary Arrangement) can be an alternative to liquidation. 

CVAs can be recommended to limited company owners whereas IVAs can be recommended to freelancers and sole traders. 

A CVA or IVA will give you the opportunity to pay back your creditors in a way that is financially manageable for you. Check the previous link for more information and commit to further research online to learn more about this debt-relief option.

Finally

Don’t assume your business is doomed to fail because of the financial difficulties you are facing. There may come a time when you’re forced to close your doors but if you can take action now to save your business, there is a chance that you will turn things around. 

Follow our suggestions and seek financial help from an accountant or debt management company if you need to. 

How To Save A Business That Is In Financial Trouble