The past week has been unsettling to say the least. While none of us knows what the next weeks will hold, here are a few things to consider to help you feel more in control of your circumstances.
Make sure your Financials are Up to Date
If you find that you need to apply for hardship relief or a business loan, lenders are going to want a good picture of your financial situation. Now is the time to get ahead of the situation so you can meet upcoming challenges. You also need your financials updated to help you with budgeting.
Create an Emergency Budget
If you don’t already have a budget, this is a great time to implement one for your business. If you already have a budget, an “emergency” budget is a short-term budget that allows you to make critical adjustments for the immediate crisis. In this situation, you need to know exactly where your money is going each month. This will help you identify how much cash you have on hand and come up with a plan for the next 30-90 days. From there, start looking for ways to cut your spending. You might want to take a step back from some or all of your subscriptions, turn off extra lights, or cut out the miscellaneous expenses like purchasing sample kits or stocking up on supplies you use regularly. Until we have a clearer picture of what the future holds, being frugal is the name of the game.
Speak with your Landlord or Mortgage Holder
If your business is experiencing lower revenue or has been required to temporarily shut its doors, speak to your landlord or mortgage holder about their forbearance policy. This is a hardship relief option that puts a hold on your payments for a period of time. Be aware that the interest still accrues, so you want to think it through and be sure it is a good option for you.
Some cities are issuing an eviction ban as a way of helping people during the coronavirus quarantine. You will need to check with your local authorities to see if this applies to your area.
Contact Credit Card and other Loan holders
Credit Card companies also have hardship policies. Some are waiving late fees or offering reduced payments plans. At the very least contact them to make them aware of your current financial situation and to see if they will reduce your interest rate.
Brainstorm with your Employees
Employees can be a good resource to help come up with creative ideas to generate income and reduce expenses. If your business is still operating, they can also help create policies that will make clients comfortable continuing their project.
If you are in need of updating your financials, drop me an email. I would welcome the opportunity to chat with you.
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