Tips for Keeping Your Business Running During a Rough Patch
When you first launched your company, one piece of small business advice that you probably received was to make sure you have the money and skills get through rough patches. While this is sound advice, you may not understand what you need to do to follow it.
Below are four pieces of small business advice that anyone can use.
- Keep business and personal bills separate: When an emergency occurs at home, it’s tempting to dip into the checking, savings, or credit account of your business to cover expenses. However, you need to avoid this practice at all costs. It will leave you without enough funds to pay your business expenses as well as complicate your tax situation.
- Negotiate with business lenders: When considering new loans, make sure that your lender won’t burden you with
high interestrates and inflexible payment terms just because you’re a bit strapped for cash at the moment. An alternative finance company like Commercial Capital Lending can be much more flexible in determining the terms of a loan and considering your unique situation when approving it.
- Pare down your budget: When money is tight, you must look at every penny your business spends and justify the cost. This includes both recurring expenses such as office supplies and one-time expenses such as an upgrade to a software program. Cutting out any non-essential item until you get back on firmer financial footing takes discipline, but the result is that you will get through these lean times much faster than if you had refused to consider your budget.
- Phone in the occasional favor: If you have established vendor relationships and have always paid your bills on time, it might surprise you to learn that many companies are willing to work with you until your business gets back on its feet financially. All you have to do is ask. Not everyone will say yes, but at least some vendors will appreciate your business enough to cut you some slack when you need it the most.
Need more small business advice or funding? Contact Commercial Capital Lending today.