No business has escaped the pandemic unscathed. Across all sectors, companies of all shapes and sizes have found themselves in extremely difficult and precarious situations. If you are struggling to keep your business afloat, here are a few steps that you can take.
Perform a detailed forensic analysis of your business’ strengths, weakness, opportunities and threats. A SWOT analysis identifies specific weak links as well as possible avenues for growth. A poorly crafted marketing campaign is one example of a costly expenditure that can be cut.
Address The Budget
Audit your business’ financial records with an independent advisor. Look at work that you have outsourced to see if you have been getting value for money. Look at your team structure to see if some duties could be performed on a part-time basis. If you are renting office space, consider giving it up and having your team work remotely. They may prefer working from home.
Consider Bankruptcy Options
Talk to a finance lawyer about whether filing for bankruptcy could give you breathing room. They will explain which is the better option, Chapter 11 vs Chapter 13. The former is more expensive and complex but can help businesses continue to operate through a rough patch. The latter is aimed at individuals.
Don’t Neglect Taxes
Continue to pay your tax bill even if you are struggling financially. You can alert the authorities to the fact that you are in trouble but late or missed payments will always count against you in the future.
Look For Ways To Save Time
Adapt your business for maximum efficiency by cutting out time-wasting tasks. AI and automated software can be set up to deal with repetitive duties and give your employees some support.
Keep Your Creditors In The Loop
Tell your creditors as soon as you realize that you are in trouble. Explain the situation that you are in and talk them through any ideas that you have that will keep their repayments coming. If you can provide a legitimate case and show honesty, then they may be willing to extend your credit to get you through this period.
Don’t Forget Your Employees
Be honest with your employees and colleagues about any risks that your company is facing. If layoffs are a possibility, they will find out one way or another. It is better that you be transparent with them for morale and future work together.
Reconsider Your Objectives
Create a business plan for the months ahead that is realistic given your current situation. Be brutal about what goals need to be cut and establish what processes are essential to keep the business running.
Find Out If You Are Eligible For A Grant
Research the latest grants and incentives that the government has provided for businesses during the pandemic and for the future. Talk to your financial advisor or finance attorney if you are unsure how to apply.