Unfortunately, your company may be going through a hard time financially. But this is something that even the biggest names in the game experience. How to manage when times are hard are discussed below.
How much are you paying your employees? Although they may be highly skilled and deserve large salaries, your business might be in a dire state. By lowering salaries by up to 10%, you’d be raising a lot of capital. Just don’t cut pay too much. You might lose workers, which would result in you having to go through the cost of hiring new people.
Find Out Why
Find out why you’re in this current state. You’ll hopefully be able to fix it and get cash flowing again. There may be a lapse in customer service, which is turning customers away.
A major reason business lose customers is due to their products and services becoming stale or outdated.
A major reason business lose customers is due to their products and services becoming stale or outdated. You need to constantly change things up. Competitors will be doing so. Make sure you don’t get left out.
Lower Your Bills
Your office may be large. By shifting to a smaller location, you’ll be able to save on rent. Instead of having an office, your team could even work remotely. You would save tremendously. There wouldn’t be rent and you wouldn’t have to worry about utility bills.
If you’re not going to be giving the space up, at least try and swap out old machinery. This suggestion may seem pricey, but the equipment might be old, which is why they’re sucking up a lot of power – and you’ll be hit with massive electricity bills. The light bulbs in the space may be sucking electricity up too.
Another way to gain a lot of cash is through borrowing. Banks and private companies are fond of lending to businesses. They are deemed the most trustworthy.
The sum you’ll be able to borrow is influenced by how good your credit score is. With a super bad score, you might be at the end of the road. There are many ways to obtainloans for bad credit in Canada. The interest you’ll have to pay would just be a tad higher.
If you have a child at home, your country might offer financial aid. Depending on your government’s policies, you can get financial help based on your child tax benefit, and use the sum received to borrow more.
Whatever equipment you don’t need, sell. You probably have quite a few assets lying around. If you’re not selling them, leasing would do. You could make quite a bit when leasing office machines.
Just do your research before listing the products. You might offer them for prices much below their worth.
All companies go through periods where they’re strapped for cash. This is perfectly normal. Thankfully, there are many ways you can bounce back. The most important would be to isolate why you’re in the position you are and try to remedy things. While doing this, you might have to sell equipment that you don’t need and lower your workers’ salaries.