3 Strategies for Saving Your Failing Small Business

3 Strategies for Saving Your Failing Small Business

Businesses struggle for many reasons. Perhaps the economy is slowing, and your profits are dwindling. You’re in a tough spot, but you believe in your product, and you’re not ready to throw in the towel. Here are three actions you can take to adjust your operations and save your business.

  1. Get Smaller

If growing your company costs you money, then shrinking it should save you some, right? It’s possible. If you once operated out of your garage, you can do it again for now. Plus, downsizing means you’ll likely have unnecessary equipment or office furniture you can liquidate for fast cash. Experienced professionals in office decommissioning Houston TX can help convert your gear into money that you can use to keep your business running.

  1. Prioritize Payables

When you owe more money than you have, it’s time to get decisive with which bills to pay first. The priority should be any obligations that can potentially shut you down if they don’t get paid on time. For example:

  • Employees: Most people won’t continue to work for free.
  • Vendors: No product, no sales!
  • The IRS: Not paying taxes results in huge penalties that could end your operation.

Use any leftover funds to make payments toward outstanding debts. Then, you can start earmarking money for current and future bills.

  1. Trim Spending

Unfortunately, staying afloat means cutting costs, even if just temporarily. First, eliminate flexible spending by canceling the company barbeque. Then, see what business expenses you can trim. Do you really need to travel, or can you accomplish meetings via video conference? Try talking to your landlord and utility companies and ask if they’ll negotiate. At some point, you may need to cut employees’ hours or conduct layoffs to keep the doors open.

Your business won’t save itself, so take action before it’s too late to rebuild.

 

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