06 Mar Is your Small Business Losing Money? 3 Tips to Keep in Mind
It’s always unfortunate when you realize you’re spending or simply losing too much money. You’re probably already starting to imagine all of the things that can happen if the trend continues. You could lose your business, your capital, even your own home. Of course, being a small business owner often feels even more overwhelming because it’s not just your job you’d be losing, it’s your entire livelihood.
While these tips may not save you from losing money, they are a good start to seeing what’s really going on so you can stop the bleeding before it’s too late.
Have You Really Looked at your Resources?
If you’re saying to yourself, “I’m broke, and I can’t afford to feed myself for lunch,” then your finances should reflect that mentality. If you’re just not hitting the margins you want to hit, or you have money tied up in other investments, or you still have a reasonable amount in savings, you’re not done yet. Skip the metaphors. Describe your situation with just the numbers. How does your bank account really look? Be completely honest so you know what you’re going to have to start skipping and what you can keep.
How is Your Plan B?
Everyone has a fallback, and you probably do, too. This is the thing where you say, “well, if I’m really desperate, I can always do X.”
Our fallbacks aren’t often ideal. They usually involve asking someone for money, whether it be a friend, relative, or bank. Sometimes it’s even worse than that and we have to start borrowing from ourselves (our equity in our house, for example). However, if that’s what will save your business, then that’s what you’ll have to do. If X is all you have to do to save your livelihood, then it may be time to consider actually doing it.
What Would You Do if It Wasn’t Your Small Business?
Let’s pretend you don’t have a small business at all. You’re back to the times before you had ever invested time and money into a small business. Imagine you’re still losing the kind of money you are losing right now because someone sued you, or you were hit with a very large medical bill.
You might not know exactly what you would do in this situation, but thinking of it this way may bring some new ideas or some creativity to the picture. It isn’t about your “passion” or your “dream” anymore; it’s about downright survival. A business emergency isn’t any different than a personal emergency, so treat it like one.
There aren’t any easy answers, and there aren’t any easy ways out of this situation. However, with a little work, a lot of hustle, and possibly an expert opinion or two, you may see the turnaround you need.