4 Essentials For Entrepreneurs In A Crisis
Crises don’t come along very often, but when they do, they hit hard.
The COVID-19 was so out of the left-field that barely anybody saw it coming, and that has exacerbated the situation.
You don’t have any backup plans because you didn’t figure on a global health pandemic shutting down the world’s economy.
Unfortunately, your lack of planning won’t bring in money and keep your business from going under.
To do that, you must act quickly and decisively, targeting the areas where you can recover the most money.
It’s not easy, but it is doable with the following tips.
Continue reading for more information.
Entrepreneurs In A Crisis: Hire An Insurance Ally
You spend years paying for a service in case the worst-case scenario occurs, and when it does, your insurer refuses to pay.
It’s typical of insurance companies to cover their backs, especially when their positions are vulnerable.
As a result, your policy provider may decide to refuse your application, leaving you with a massive hole in your finances.
In this case, an insurance public adjuster is essential as it’s their job to negotiate on your behalf.
Using their expertise and experience, you’re more likely to come to an agreement that favors everybody.
This is better than accepting your insurer’s decision and receiving nothing.
Chase Up Invoices
There’s no way you can leave money on the table at a time like this. It’s professional suicide.
However, in 2016, a whopping $825 billion was owed to small businesses, so it’s not a leap to suggest the figure is similar in 2020.
The key is to understand that the amount is significant, regardless of the size.
It may be a few hundred dollars, yet that could be the difference between appeasing creditors or being saddled with extra debt. A good tip is to scale up your request.
Start a week before by sending a friendly reminder, move onto being more direct, and imply the likelihood of legal action lastly.
Apply For Grants
Business grants and bursaries do exist, and you’re not too big to apply for them. They aren’t handouts – they are schemes to ensure the economy doesn’t collapse.
The government wouldn’t sanction them if they weren’t essential because the administration won’t give away money freely.
Go to the government’s or local authority’s website and research which program is the most suitable.
Once you know, you can make inquiries and apply for a cash injection to see you through the pandemic.
It beats a bank loan with extortionate interest rates.
Put More Away
When you recover the money or find alternative avenue streams, you should focus on saving or investing for a rainy day.
Firstly, you’ve been stung by poor preparation before, so it’s stupid to put the business in the same position.
Secondly, a recession is likely due to the global economic impacts of COVID-19, and it could last a long time.
Therefore, you’re going to require a safety net to stay out of the red and in the black.
How are you optimizing cash flow during this hard period?