Sometimes in business – as in life – things don’t go to plan.
The cash flow is just not flowing, you may face an unanticipated family crisis, or be thrown a curve-ball by mother nature.
It can be tempting to find a rock to hide under.
But burying your head in the sand is not going to solve anything. In fact, it might even make it worse!
Regardless of the reason you find your business in deep water, there are some tried and true things you can do to help get through those tough times. That’s whether you are facing a road bump or an unexpected dead-end.
Here’s where to start when everything goes wrong…
What To Do When Everything Goes Wrong In Business
Take Action Quickly
Take action as soon as you are aware that your business is heading for trouble. It can be tempting to put your head in the sand and hope things improve on their own, but the sooner you tackle the problems, the more likely it is that you will be able to save your business when everything goes wrong.
The action you take will, of course, be dependent on the problem you face. But it can help to take a step back and try to assess the bigger picture in the first instance. If you are having trouble doing that alone, then reach out to your Accountant, Bookkeeper or Business Coach for advice.
Remain Open-Minded, Flexible, And Positive
Remember that worry is just thinking without action. Getting worked up will impact your ability to think clearly and rationally. As will falling into a negative thought pattern.
Maintain a positive mindset, and you will be more open to tackling the solutions without feeling overwhelmed. Facing uncertainty in your business can be distressing, but focusing on solutions rather than problems will help you and your team survive.
Sales Solve Everything
Now is not the time to be a shrinking violet.
Focus first on your existing client base – reach out to them and ensure they’re happy. Is there anything you can do to improve their experience? Consider a (tactful) upsell. Do they need any additional products or service from you?
How can you extend your marketing reach? Networking, advertising and promotions are all worthwhile exploring.
Chase Any Outstanding Funds
Chasing money owed to you is never anyone’s idea of a good time. But you can quickly turn your cash flow situation around by chasing any outstanding invoices you have. It’s always a bit of a morale boost to see payments arrive into your bank account too.
Cut Costs And Prioritise Payments
Now is the time to trim the fat. Review all your spending and cut any unnecessary expenses. Then look at areas where you can lower costs, such as travelling less, reducing energy use to lower power bills, or chatting with your landlord about a temporary rent reduction.
Nobody wants to have to let staff go, and this should be a last resort. If it comes to this, consider reduced hours or lower compensation before layoffs, if possible.
Look at all your upcoming expenses and prioritise those that are essential to keep your business running, followed by those that may incur penalties if you default.
Review Your Assets And Boost Revenue
You need more money coming in. Are there business assets that aren’t essential? Could you sell excess stock at low cost to free up some cash?
If possible, look for ways to make money quickly. Perhaps some items or services are more profitable at this time. Cut out those that aren’t as valuable, and focus on the ones that will bring in cash.
Focus on the stock you already have on hand or digital products so that you don’t have to outlay money to make money. Also, consider selling gift vouchers if appropriate or offering payment plans to customers to get them onboard quickly.
Chat With Your Creditors
Get on the phone and chat with your creditors as soon as possible. Be honest and explain your situation. Be proactive and offer a suggested payment plan. Many will understand and be willing to make allowances if they believe you will pay them down the line. If meeting with your banker or similar, make sure you approach them with a robust plan of action to show that you are being proactive.
If everything is going wrong in your business due to circumstances outside your control, look for ways to pivot! Sit down with your team and brainstorm ways in which you can quickly adapt to offer value to customers at this time. Don’t be afraid to think outside the box and get creative. Sometimes a pivot may not be possible, but it is worth a look to see what you can come up with.
Get Expert Advice
Sometimes, it’s hard to see the wood for all the trees. During difficult periods, it can help to take a step back and bring in someone else for insight and advice. Chat with your accountant or a financial advisor; they’ve likely seen other businesses through some tough times and may offer solutions you haven’t thought of.
And if you are buried under a mountain of admin and finances, then you can get in touch with the team here at Admin Army. We love the jobs that you hate and can help by taking them off your hands. That allows you to focus on generating revenue for the business. Get in touch with us today.