3 Ways to Save Your Small Business
When You’re Buried in Debt
If you own a small business, then you know that 2020 has been a tough year. With everyone staying home and less business coming in, you’ve likely hit a roadblock.
If you are experiencing lower sales volume, it’s likely that you are also accumulating debt.
Luckily, there are some ways to help pull yourself out and save your business.
Try New Tactics
Luckily as a small business owner, you have the ability to create new revenue streams easier than you would as an individual facing consumer debt issues. You can boost sales by offering a “limited time only” sale or offer special coupons and discounts that can be used during this time.
This is a great way to move some of your inventory that represents your money that is tied up in the business. Once you get some of the inventory moving you can use that increased cash flow to pay down some of the debt your business is accruing.
You can also boost visibility and sales by trying content marketing, ask for referrals, or set up affiliate marketing on the internet. These are low-cost advertising ideas that can help increase your customer traffic and help get your debt paid down.
Cut Unnecessary Expenses
When you find yourself in a situation where sales are low and money isn’t coming in as frequently, you need to start looking to see where you can cut expenses. This might be difficult at first because you probably consider everything a necessary expense but there are some areas you can make some cuts.
Usually, you’ve reached this point because it’s necessary for your company to survive, so you will have to look at all your expenses with a critical eye. There might be some small updates to your spending that you can change, for instance, you could switch to a cheaper brand of coffee for the office which is an easy choice.
However, you might need to make some bigger, more difficult adjustments. This might include reducing the amount of staff you have or finding an office space that has cheaper rent.
Once you have tried boosting sales and cut back on expenses, it might be time to reach out for some help through a debt consolidation loan. Your business can apply for this loan and will allow you to consolidate the money you owe to several different creditors into one main loan.
When considering this option, make sure to do your research and avoid companies who might be looking to scam you out of your money or don’t offer a good deal. Ideally, you should find a BBB debt consolidation company so that you can rest assured that you are in good hands.
In order for debt consolidation to be worth it, you will need to make sure that your new monthly payments are lower than what you were originally paying.
We’re All In This Together
These are some of the most critical steps to take when your small business is buried in debt. Hopefully, with a little ingenuity and critical planning you should be able to succeed in getting your business profitable and out of debt in no time.