Aug 12, 2021
Tips to Help Save Your Business From Financial Crisis
We watched our 10-year-old business nearly go bankrupt in just 10 days during the 2008 financial crisis. We survived, and our company was sold to great success. We had to convert a dollar into ten many times and invest in fintech. It’s the same feeling entrepreneurs have now. We are in crisis, let’s face the facts. For all you lonely entrepreneurs, there are certain things you must do in the coming weeks to survive and thrive.
Save Cash and Create a Plan
Take a look at where you spend cash. You must reduce it if it isn’t essential. It is essential to think like your revenue is zero. You must treat every dollar that you spend as if it were revenue. You need a plan, and you must execute it. How much revenue will you generate? What are the most important expenses? What are the most important initiatives and efforts?
Only the most essential activities should be included in your plan. Your plan should only include the essential activities. Execution is what you should be focusing on – not emotion. All of your effort and time must be spent in executing your plan. It is normal to be anxious about the future, but it is not a good idea. You can be resilient by being disciplined and making progress towards your goals.
Cut Employee Expenses
This is a difficult time for employees. Reduce your employee expenses. This is a significant portion of our expenses. Layoffs are one option, but it is possible to use creativity to help employees. You can restructure your compensation to be more tied to results. Split one job into two. Ask people to work only for health insurance. For a time, ask them to work for no pay. These are difficult decisions that require leadership, but everyone should be able to understand the situation. They must do the best for their family, but in the best-case scenario, you can sometimes use these creative methods to keep them on board until the virus passes.
Bottom Line
This crisis has left many people without jobs. Ask for help from them, and make sure to tie their compensation to your results. It may be necessary to work offshore. You can find many low-cost resources on Upwork. You might also consider high school or college students who have a lot to do at home.
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