It’s not uncommon for businesses to go through peaks and troughs when it comes to growth. Recessions, changes to your market, and unforeseen expenses can all affect how well your brand is doing, and it’s vital you don’t panic if yours seems to be struggling. But it’s also crucial you take action to address the problems. Having the right help on your side is a great place to start, and we’ve got the tips you need to team up with the right people.
Find Out Where Things Went Wrong
Before seeking help, see if you can find out what went wrong with your finances. Perhaps you took out a loan that was too large for your income, or you invested a lot in a marketing strategy that saw little return. If you can identify the cause of your financial issues, it’ll be far easier to explain what happened when speaking to others and find the right avenues for help.
Speak to a Financial Advisor
If you’re not sure what went wrong or how to fix it, your best bet is to speak to a Chartered Accountant or to a financial advisor. Even if you have a plan to get your company back on track, it’s still best to speak to an expert and have them on your side as you proceed.
A financial advisor can audit your current accounts and help you reign in your spending, finding areas to cut costs and stop your company from haemorrhaging money. They can advise you on investments, too, ensuring the funds you do have are put to good use and set up internal processes to help you monitor your accounts with ease.
Once your financial expert has stabilised your business, they can then help prevent you from struggling again. By following their advice, you can ensure your cash flow works in favour of your company and keeps you afloat, even during difficult periods. If sales fall, solid finances should keep your company going.
To find a trusted Chartered Accountant or financial adviser, ask your contacts for recommendations, search online, or speak to your bank.
Look into Viable Loan Options
Business loans can be a wise move when done properly. Of course, when you’re struggling, debt can be the last thing you want to add to your list of concerns, but when managed properly, it doesn’t have to become a problem. A small loan to get you back on your feet can be just what you need.
We recommend speaking with your financial advisor or a bank about whether a loan is the right option. If it is, there are a number of different options you can choose from, including:
Bridging Loans
If time is of the essence or you only need short-term funding to turn your business around, discussing a bridging loan with an experienced mortgage broker could be a great option. These are usually quickly approved, and you’ll have the money in your bank account in no time, providing a nice cushion of cash to re-invest. However, do be warned that interest rates will be higher than a bank loan, and we only recommend bridging loans if you know for certain that you’ll be able to pay them back.
Bank Business Loans
Many banks offer loans specifically for businesses. You may be able to borrow up to as much as £200,000, and the bank should offer you favourable repayment terms that are created with your income in mind. Be sure to shop around for different interest rates and loan amounts before choosing which bank you borrow from.
Invoice Discounting
This is a process whereby a financial intermediary takes over your invoice management. They advance you the cash and manage credit control on your behalf for a small fee. This can be an effective way of managing cash flow issues. Many banks offer an invoice discounting service and there are also some specialist intermediaries.
Government Grants and Financial Aid
The government does have some financial support and grants available for businesses. Before taking out a loan, it’s well worth looking into what’s on offer and if there’s anything you may be eligible for. If you’re unsure, reach out to your local LEP or council staff for more information. Even if there isn’t money available, they may be able to direct you to other business support options, such as courses and free advice.
Reach Out to Trusted Contacts
It’s all too common for CEOs to suffer in silence when their business is struggling. But reaching out to your network may be just what you need to boost morale and get your company back on track. Other entrepreneurs will be more than happy to share their own experiences of hard times and offer advice on how to get back on your feet.
If you don’t already have a network, it’s easy to find one! Look in your area for women’s business groups, or check for groups on social media. There are tons of Facebook pages, for example, set up for women in different industries to connect, share stories, and offer advice. You just need to look, and there will be plenty of people ready to help.
Final Words
Keeping morale up when your business is struggling can be tricky, but it’s the CEOs who face hard times and keep going that end up succeeding. With these tips, you should find it easier to seek help, too. With the right financial resources and a positive outlook, you can turn your business’ fate around.