Business owners are well aware that being prepared is the name of the game. And while you may be ready to deal with any problem that may arise, even the most prepared business owners can be blindsided by a financial emergency.
While you’re likely stressed and panicking, the good news is that you can survive this financial business emergency. Once it’s over, you’ll want to do what you can in the future to be prepared, just in case.
Here are 5 ways to survive a financial emergency without costing your business.
- Cut Spending
Chances are there are certain items in your budget that you could cut temporarily or even permanently. When you’re in a financial bind, now is a great time to take a look at your budget and determine where cuts can be made.
Can you hold off on an upcoming office supplies or inventory order? Is there a cheaper plan available through your utility provider? Can you hold a business meeting via the Internet versus traveling? There are all sorts of options to consider when trimming your budget.
By saving money on other expenses, you’ll have more funds available to help you get through this financial emergency. At the same time, examining your budget is beneficial in the future so that you know where your dollars are going and if they’re being spent in the most effective way.
- Get a Short Term Loan
If a recent incident has left you in a financial bind, you can get a short term loan. A short-term loan is a streamlined approach if you need to get out of a cash crunch quickly. This type of loan is very similar to a traditional loan except you don’t have to wait weeks or months for funding to be approved.
Instead, with a short-term loan, most lenders can deposit funds the same day you apply. These loans are approved so quickly because they’re submitted and reviewed online versus stacks and stacks of paperwork for a lender to review.
With this type of loan, you have a set interest rate and you’re expected to make daily or weekly payments. Loan terms can range from 3 to 18 months.
Before applying for a short-term loan, ensure you can afford the high interest rate as well as the frequent payments. If you default on the loan, not only will you lose more money, your personal and business credit scores will also be impacted.
As a rule of thumb, borrow the bare minimum amount to help you get by.
- Re-Engage With Customers
In a world where it’s crucial to get new leads on a regular basis, it’s easy to forget about your past customers. While you may have noticed that customers have stopped doing being with your customers, chances are they stopped because you haven’t engaged or connected with them in months.
By re-engaging with your customers, you may be able to drive some sales and in turn create some business income. This may be just enough to help you through a financial emergency.
So how can you re-connect with customers? There are all sorts of options including:
- Sending an email with a coupon or buying incentive
- Posting new content on your website’s blog
- Running a social media campaign
There’s no wrong or right way to engage. The key is to create some buzz around your company to persuade people to buy your product.
- Consolidate Vendors
Just as you can bundle services to get a cheaper package rate, you can also get considerable discounts by consolidating your purchases to one or two vendors. With a single vendor you can buy at a higher volume but at a lower cost.
From office supplies to I.T. equipment, chances are you’re using a variety of vendors. Take a look at your business expenses and determine if there’s an opportunity to work with a single vendor as a money saving opportunity.
- Reduce Staff
During sales slumps, you can save thousands of dollars by cutting employees. While this is a serious action to take, it’s worth considering if your staff has grown too big for the work that needs to be done.
Take a look at your business’ past. Do you always have a sales slump during a certain month? Is the latter half of the year always slower? If so, these are the opportune times to either hire part-time or temporary staff members. You could also consider outsourcing some of your work to save costs on training and employee benefits.
From a sales slump to a burst water pipe in the office that destroys your I.T. equipment, something major can go wrong at any time. To protect your company, be sure you know how to survive a financial business emergency so that you can get things back up and running as quickly as possible.