Choncé Maddox — March 23, 2020 It’s a common fact that being in business for yourself is not the most secure place to be. You have the freedom and flexibility to create whatever you want and call the shots. However, you will also have people depending on you and will likely need to respond to changing trends and current events.
Still, it’s safe to say that no job is completely secure. Given the current events going on in the world today, it’s safe to say that we are in some pretty turbulent times but there are still some key ways to protect your business.
Here are 4 key ways to keep your business afloat during turbulent times.
Cut Expenses
If you feel your business income may take a hit or your budget could be affected, see if you could cut some non-essential expenses. This could be a temporary or permenant change depending on where you’re at. For example, if you’re renting out an office space, you may be able to save money by going fully remote. Skip meetings and events that won’t directly link to revenue and contribute to the stability of your business.
Go through your business budget line by line and see if there is anything you can cut to bridge the gap and preserve your savings.
Adapt By Offering a New Service or Product
Some businesses fail because they are unable to evolve or adapt to society’s changes. Make sure you’re educated and current about what’s going on in the world around you. Then adapt your business to meet the needs of your audience and customers.
Sometimes, this may involve offering a different service or product. If you’re freelancing, you may want to start billing clients in advance vs. waiting until the project is complete to charge a fee. Another example could be a speaker or information-based company who offers in-person workshops but starts selling their footage online at a discounted rate. Making wise changes large or small could help keep your business afloat during turbulent times.
Remember that when you shift your business in this way, it may require shifting your sales and marketing strategy as well.
Consider Business Interruption Insurance
If your business revenue is severely impacted by factors outside of your control, business interruption insurance may be able to help. Business interruption insurance is often added to a property/casualty policy and the premium payments are tax-deductible.
This type of insurance can cover operating expenses, temporary move, payroll, taxes, and loan payments.
Consider Refinancing
Currently, interest rates are dropping so it may be a good time to refinance debt and save a little money. Refinancing debt can lower your money payments and funnel money back into your business.
Before you consider refinancing, make sure you run the numbers to see what your costs would be and how much you can save.
Summary
Going through turbulent times in your business is never fun and can always seem like a threat to your finances. Try to remain positive and take wise action steps toward resolving any issues that may come up in your business.
The steps you take (or don’t take) will have a direct impact on your ability to keep your business afloat in the long run.
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