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You might have a groundbreaking idea and a great staff, but your business is never fully immune to experiencing a financial crisis. Managing your money wisely and budgeting correctly are among the top priorities and hardest tasks small business owners deal with.You never know when a simple mistake or set of circumstances could leave you in the middle of a finance nightmare. So check out these 4 great strategies you can implement to turn your nightmare into an opportunity and guarantee working capital for your small business:
One of the most widely recognized methods of financing any type of small business venture is taking a bank loan. Many small businesses experiencing financial difficulty go for this option mainly because it’s the most obvious. But is a bank loan always the best option?
Many alternative methods of financing, such as the FundThrough working capital loans, are sometimes a more appropriate and beneficial option. In comparison to bank loans, FunThrough offers lines of credit which most other financing institution wouldn’t, mainly because it doesn’t request a financial history report. One of the reasons behind the long and tedious process behind applying and qualifying for a bank loan is the financial check and laborious task of preparing the necessary documents. FundThrough, instead, assesses your application on the outstanding invoices from your customers. This can be done online in only a few minutes.
Some businesses never get approved for a bank loan, meaning they’ve wasted their time. This creates a situation where a delay could only worsen their financial difficulties. Even if their loan is accepted, bank loans have a much higher interest rate compared to alternative financial institutions. With FundThrough you get to draw money whenever you need without commitment periods or minimum sums.
2. Embrace Sustainable Business Practices
Sustainable business practices are not just for small startups or huge corporations trying to impress the public with their green outlook. Incorporating sustainable business practices such as conducting a green audit can increase financial returns and reduce risk. This strategy can then be implemented to help solve financial difficulties.
Of course, you should consider engaging in responsible entrepreneurship not simply for financial reasons. It can also help out in the long-term by improving customer sales and loyalty in addition to attracting and retaining valuable employees. It’s important to note that this solution won’t get you out of a financial mess. However, it could improve your overall situation and help you reach your long-term goals.
3. Work Closely With a Knowledgeable Accountant
If your business is approaching a financial cliff without an accompanying decrease in sales or customer interest, then you might be dealing with an internal issue. One of the main reasons why most small businesses never manage to expand or end up going bust is the financial neglect or limited financial training.
But how can you know your finances are being handled in the best way? Working closely with a knowledgeable accountant is how. This is an excellent way to minimize your costs. Combine this with remembering to ask for financial advice and you’ve got a great strategy to positively impact your business. Done right, it should guarantee both short and long-term financial stability. So make sure you build a strong relationship with your accountant, even if you don’t have an in-house one, that way you’ll be able to consult them and get honest insight.
4. Find Investors and Crowdfunding
Finding great external investment is one of the best-case scenarios when experiencing financial difficulties. Pitching your ideas to the right investors and possibly attracting quality partnership for your business is a great strategy. Where can you meet such investors? Reach out via social media, do your research and connect to promising investors on LinkedIn and get a conversation going. Join networking meetings and ask other small businesses for insight, why not search for an investor-startup/small business meeting events and attend?
The increasing popularity of online Crowdfunding platforms also provides a huge variety of opportunities for your business. Just design your pitch, make it compelling, and see the great results crowdfunding makes possible. Bringing people together to sustain your business and stabilize it, at a low cost no less, is something many have managed to succeed in.
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