When you find that your small business is in trouble, this can obviously present a huge amount of stress and worry. Your main concern will be to fix the issues at the company and get it back on track as soon as possible. In terms of rescue strategies, there are a number of different paths that you can go down. Here are some of them that are worth discussing.
Focus on Your Key Clients
Small businesses in particular are often reliant on a handful of key clients. These are the ones that you need to focus on. If you have smaller clients who are taking up too much of your time, these are the ones that need to take a backseat at this time of emergency. It may seem counterintuitive, but you may not even want to take on any new clients at this time. Instead, you are better off keeping your key clients satisfied and guaranteeing this continuing revenue.
Look at Funding Options
In terms of funding options, there are a few different possible courses of action that you can take. First of all, you could look into business loans or another similar arrangement. You can either get these on a private basis or ask friends or family to help out. Alternatively, you could look into getting further investment—though you are going to have to have a clear plan of how you are going to navigate out of this existing crisis. Another potential option is to seek out an insolvency practitioner. Ultimately, it is certainly worth exploring all of the different opportunities that are available to you.
Call in Any Existing Debts
It may be the case that your company already has some existing debts that you need to call in. While you may have been lenient on these so far, when you are in an emergency situation, you need to take drastic action. You need to send out reminder notices to everyone who is past the deadline on paying you. In the more extreme situations, you may even have to look into using debt collection agencies. If you have any debts which are not yet due, you could try offering a discount for early payment as a way of stimulating the cashflow at your company.
Cut Your Costs
If you have already done everything that you can to try to generate more revenue at your company, the time may have come to start cutting costs. There are all sorts of overheads that may be dragging you down. Ultimately, you need to look at the areas of your company that are essential for its successful running and find a way of keeping these going. Anything that is superfluous is at risk of being cut.
By putting into practice some of these different strategies, you will be putting yourself in the best position to rescue your small business and come out of the other side in the strongest way that you possibly can.