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Published On: Sun, Jul 30th, 2017

Taking Your Company from Crisis to Success

When things are not going well there is a tendency for some to try and stop things or slow them down in order to have a second to catch your breath. The feeling is that somehow by doing this things won’t seem so bad or look so dismal. This perhaps natural reaction is actually the least beneficial approach to the situation. When things go bad, you need to act decisively to create a different reality for your organization. But those decisive moves need to be carefully calculated and thought through to get your company in the success column.

When we talk about being in crisis, it is important to note that this does not necessarily mean that you are failing or even unprofitable. It could mean that things were humming along and all of a sudden there is a sustained dip in sales, a loss of clients, or even that you can’t hold on to key employees any more. The common theme is that there is a sudden change or realization of change that is or is about to negatively affect your business. Again, when this is the case, you need to act. Here is the primary thing you should do to get things back on track.

photo by photoSteve101 via Flickr

Focus on finances

When you hit a rough patch, what you need to know immediately is how you are positioned to deal with it from a financial standpoint. Are you and will you continue generating enough to sustain your business? And, which areas of the business are generating or burning cash?

Do you need to bring in more cash quickly? If so, you need to consider every option from getting accounts to pay quicker to applying for loans for the business. Quick is not instead of responsible. We recommend that you always check if the lender is FCA approved.

Quick Loans: There are a range of quick loans available these days that you can use to fund yourself for a short period of time. If you have a small business with small needs you should consider instant payday loans that you can apply for online and receive the same day directly into your account. These loans are tied to your wages, don’t require good credit, and need to be paid of quickly. Also, companies that offer payday loans also provide additional loans tailored to fit your specific situations and needs. Contact a reputable company and discuss your current situation.

For larger and more established companies getting a business loan from your existing bank can be a great option. Go and see your banker and let him know that you are having financial issues and they will work with you to quickly get you additional capital.     

Speeding Up Accounts Payable: Look through the list of clients in your accounts receivable and determine which are likely to be able to make an early payment. Keep in mind that businesses understand that other businesses sometimes get into a tough financial situation, so asking for a faster payment turnaround will not likely cause a stir and if the can do it, they will do it happily.

Cut Non-core Activities and Expenses: When you are in a financial crises you need to quickly examine your spending and separate the critical expenses from those that are not. Non-critical expenses may include: employee expense accounts, bonuses, and business trips to conferences and trade shows.  They may also include other things that one might not immediately consider such as: non-core employees, satellite offices and leased vehicles. You should however examine closely how any of these are contributing to your key revenue sources. If there is a question regarding whether the item is or is not, do not get rid of it.

Take a deep breath and say to yourself that you can get through this. You can if you focus on what is important.

Author: Lolita Di

On the DISPATCH: Headlines  Local  Opinion

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