You poured your heart and soul into starting your own company and now you're facing circumstances no one saw coming. What now?
We know being a business owner is a big task that brings many uncertainties and fluctuations in money, foot traffic, leads, the list goes on. As a small business, we also know that when these fluctuations turn into a drop, it doesn't mean the end. You can continue to proactively manage your business during negative times by implementing a range of tactics.
Understand your current financial position
Don't make any decisions until you fully understand where your business is at money-wise. There are many resources on offer that can help you during a low cash flow period and assist in deciding on your financial position right now. During this time stay connected with your finance broker! They can discuss current and future loan options in-depth and help you decide the next best steps to minimise the monetary impact on your business.
Contact the bank
Each bank offers a range of resources that can help businesses in negative situations. Talk to your bank's hardship team and ask about relief options available for any personal mortgages or loans you may have. Once you've spoken to the bank and alerted them of your situation, sit down with your broker again and make a plan. Having a clear goal will help you stay motivated and feeling in control.
Communicate with stakeholders
Your staff are the reason your business runs smoothly- use them to your advantage. If something is going on behind the scenes show them respect by keeping them in the loop. Work with them to implement a plan that is beneficial to the business and openly discuss any impact incoming changes may make to the way the business operates.
Secondly, your customers are the reason you even have a business. Make sure you continually update them on how your business is being impacted, how it is affecting your product or service and what they can do to support you during this uncertain time.
Seek tax advice
If your cash flow is being impacted the last thing you'll want to do is spend the money you do have left on tax payments. In certain situations, you may be eligible to apply for a payment deferral through the Australian Taxation Office. Under difficult circumstances, it is beneficial to liaise with your loans broker. They'll understand your loan position inside out and can keep you updated with any repayments that might affect your cash flow. With access to a wide range of resources, they can also help you understand what options are available in regards to your future payments and the future of your business loans.
Get networking!
Online networking is an easy way to feel like you're still in control while taking your mind off current events. Keep your following up to date with your businesses journey and grow a supportive community. Reaching out to your network can grow your connections and generate great advice and innovative ideas from those who may be in the same position as you or have already overcome a similar situation. No matter the problem you'll never be alone in it.
Staying accountable, informed and most importantly positive during uncertain times can be the difference between collapse and survival. While you may feel that many things are out of your control there are still steps you can take to get back into the driver's seat and get your business back on track. If you'd like to speak with an understanding professional about your current financial position, get in contact with us as SFE loans. We specialise in business finance and work with business owners to make realistic plans and goals for the future.
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