Getting Your Business Back on Track in 4 Steps
Updated: Feb 20
Hard times can fall on even the best small businesses. Economic downturns and unprecedented circumstances can affect any company, and sometimes mistakes are made. A negative period in your business does not mean you have to fold. To get your company back on track, there are some steps you can take. Copper & Brass presents some tips and important information to help you get things back on track.
1. Create a Budget
Even if you have previously designed a budget for your business, difficult times call for the implementation of new practices. The best way to start is by setting up a new budget that reflects your company’s current needs. Take into account where your outgoing expenses and incoming money have changed, and shave costs off variable expenses that may be temporarily decreased so you can infuse capital elsewhere. Variable expenses might include your own salary, marketing costs, and professional development.
Budget Planner: https://www.copperandbrass.net/product-page/smart-girls-budget
2. Hire an Accounting Professional
If you don’t already have an accountant on your payroll, it may be time to look into hiring one. Though it may seem like a tricky time to bring another employee in, you can find freelance accountants to assess your financial situation with a professional eye. An expert will be able to see places in your books where improvements can be made to put your company in a better position, bringing in more revenue and decreasing costs.
Accountants also know much more than simple bookkeeping. They see the broader picture, helping you predict trends and make smart moves toward a more successful future. To find a freelance accountant to help you make a business plan, check out an online freelance marketplace.
3. Consolidate Debt
If you have several creditors to whom you are paying fees each month, you may be able to reduce expenses by consolidating the debts you have into one loan. By doing so, you can simplify your payments schedule, and instead of paying multiple payments each month with fees toward each creditor, you can pay one payment to one lender.
This is only a good option, however, if you can get a lower rate on your new business loan for debt consolidation than you have on your other lines of credit. Shop around to find the best rate before settling on a lender for your loan. Money.com also suggests making sure that the loan has reasonable repayment terms and that the fees aren’t too high.
4. Protect Yourself for the Future
It’s important to have you and your assets separate from your business so that if something causes things to go poorly, you have some protection. Forming a limited liability company provides you with that extra layer of security, making it more difficult for you to have to personally pay for debts or claims against your business.
LLCs also offer tax advantages that may result in your business paying less when tax time comes. Regulations vary from state to state, so research those in your area to make sure an LLC is the best fit for you. If you do decide to move forward, you can easily form one online using an LLC formation service such as Zenbusiness — you'll avoid excessive charges from a lawyer this way too.
Don’t let your entrepreneurial dreams die because of a rough patch. All businesses go through them, and with the right steps, you can get yours back on the path to success and even stronger than it was before.