If your business hasn’t been flourishing as much as you hoped it would financially, then you may be starting to wonder what your future is like in the industry. Perhaps you’ve made some mistakes, financial faux pas if you like, that haven’t stood your business in the best stead for thriving. You now regret making them but it’s too late, your business is already in trouble.
Whatever errors you’ve made that have put you in a bad financial situation, don’t judge yourself for them. The fact is that we all make mistakes from time to time, we’re human, it happens, so don’t beat yourself up about it. Financially, times are tough for businesses of all shapes and sizes, so don’t feel embarrassed that you’re in a bit of a financial pickle because you’re not alone.
So you’ve made some mistakes, and now your business is in a bit of a financial mess. With that in mind, the question is, what should you do now? What are the next steps that you need to take?
Tot up your debts
The first step that you need to take is to sit down and go through your finances, totting up any unpaid debts that you have. This can be incredibly daunting, sitting down and going through your business’s finances, but it’s something that you need to do if you are going to sort out the situation before it gets any worse.
Start by getting all of the information that you need together, then call each of your creditors to find out exactly how much you owe them. Jot the number for each company down on a piece of paper, and then when you’ve called them all, use a calculator to add up the total amount. Whatever it is, try to stay calm and not panic, as getting in a state about things will only make dealing with your financial issues worse.
The next thing that you need to do is try and look at the situation that you’re in objectively. Sit down, look at each piece of information that you have about your business’s financial state, and look at it with an objective eye. Look at the total that you owe and ask yourself whether there’s potential to turn things around, and if so, how you could do that.
If you can’t look at the situation objectively, perhaps you have a friend or relative who you trust to do so? You need to get a proper understanding of how serious the situation is and what the best course of action could be, which is why things need to be looked at objectively. If you’re going to deal with the situation, you need to know how bad things really are.
What’s the structure of your debts?
Now, the next thing that you want to focus on is the structure of the debt that you have. This means looking at whether your debt is short-term debt or long-term debt. If your debt is mainly short-term, perhaps you could consider trying to pay it off with a longer term loan, turning it into long-term debt, giving you more time to pay it off. This can work well, as long as you’re able to afford the repayments, that is.
Often, when it comes to taking out long-term loans, you need some equity to put against it, whatever you do, don’t use something that you own personally, such as your home or car. As otherwise, should you struggle to keep up with the repayments, you won’t only lose your business but also your family home or car.
Talk to a financial advisor
If after looking at the position that you are in, you can’t see a solution, it could be worth getting in touch with a financial advisor. Remember, just because you can’t see a solution that doesn’t mean that there isn’t one, it could just be that you haven’t found it yet, that’s all. Which is why contacting a financial advisor can be such a good idea, especially if you are struggling to know what steps to take next.
You may be able to arrange an initial appointment with a financial advisor for free, depending on which service you opt to use. So don’t let the cost of the appointment put you off, as it’s important that you get the chance to talk to an expert about the predicament that you are in, as they may have a simple solution that can help you to get your business back on track.
Consider all the options
Make sure to consider every option that you have, whether you like the idea of it or not. Because in the long run, the most important thing is that you do what’s best for you and your family, as well as your business. You may not want to have to say goodbye to your business, but if doing so helps you to get your life back on track, then surely it’s worth it? Be open to considering all the options that you are given so that you can make the best choice for you and your business.
Take the option of liquidating your business, for instance. You may not be keen to do it, but as specialists like those at Dissolve say, sometimes it can be the best and smartest option. Even if you’re not keen on liquidating your business, it’s still worth considering it, just in case it is the best solution you have to the difficult situation that you’re in.
Don’t bury your head
Whatever happens, the worst thing that you can do is bury your head in the sand. When life becomes stressful, burying your head in the sand is something that’s easy to do, it really is. However, it’s not worth it, as if you bury your head and ignore what’s happening, you will only make things worse for yourself, which isn’t worth doing. It’s best to face things head on, and deal with them properly, instead of pretending that it’s not happening.
It may not be easy to hear that your business is failing but it’s something that you need to face up to if your business is, in fact, going down. It might seem like pretending it isn’t happening is easier, but the fact is, it will happen anyway. So it’s best to face the problem head-on and deal with it, instead of pretending it isn’t happening, because this will only make things worse.
The sad fact of the matter is that sometimes it can only take one financial faux pas to leave your business in serious trouble. Whether you’re simply not bringing enough money in and unable to make ends meet, got a loan that you can’t afford to pay back, or tried to expand too quickly, if you’re in financial trouble it can be hard to admit. This is especially true when you know that it may lead to you losing your business.
However, whatever the cause of your business’s financial problems, it’s important to deal with things as quickly as possible. Get to grips with the amount that you owe, look at things objectively, don’t be afraid to talk to an expert, and no matter what, make sure not to bury your head in the sand, as this will only make things worse. It might be hard to come to terms with the situation that you’re in, but the sooner you deal with the issues, the better. As that way, they won’t begin to get any worse than they already are.