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My foray into entrepreneurship was one I knew would come with a lot of risks and uncertainties. Maybe, I should have just stuck to just my regular 9 to 5 (Well, I had to combine both).
I make financial decisions on a regular basis. I always aspire for expansion in my business, just like any other entrepreneur. In my quest to take my small business to another level, I ran into a financial crisis sometime in late 2017.
This happened as a result of a number of reasons; bad business decisions, trapped investments and deals that went south. Trust me, it was very devastating. At that time, the temptation to close shop was very high and quitting looked like the most convenient option.
A lot of men are going through this phase of their life and are looking for a way out.
When you find yourself in a financial crisis, quitting should not be the only option to consider. You can always find your way back up on your feet. It’s only a business setback, you can always bounce back. Below are some things I did that helped me come out of the financial crisis. I recommend you do them as it applies to your case.
Cut Down Expenditure
The fact that I was in a financial crisis meant my spending power had reduced by default. I could no longer afford to spend as I used to. I reviewed some things I spent money on. This also included the running cost of my business. The cut was on both capital and recurrent expenditures.
I needed to expand, but I had to bring my expansion plans to a temporary halt. I negotiated with suppliers for lower rates. The ones I could not come to an agreement with, I outsourced alternative ways of getting the supplies at cheaper rates. This proved to be a very effective expenditure cutting tactics that really helped me.
Close Leakages
At the time I was going through a financial crisis, I audited my business internally. One of the things I found out was that I was losing money through unaccounted fund dispensing. And this was coming mostly from my administrative department. I realized that a great part of the money they ask for was not used for purposes that will benefit my business. I did not quite take importance to that until I hit the brick wall in my finances. I also discovered that I had staff that I did not necessarily need. They were on my payroll and yet contributed little or nothing to the advancement of my business. I had to lay some of them off and place the remaining on salary cut. It was hard, but critical situations demand critical approaches.
Prioritize
One thing I never wanted was to get to the point where my business shut down completely. So I decided to carry out my business activities, especially those involving money outflow, in order of importance. Before I approve money for anything, the importance to my business had to be critically ascertained. It was then I realized that some ventures demand less and pay more while some others demand more and pay less. I have this advice to give: the feasibility and profitability of an investment or venture should not be the sole determinant of your financial commitment, especially if you are trying to recover from a crisis. I had to decide what mattered most to me. I avoided making rash business decisions to avoid a further colossal crisis. I did what mattered most.
Explore Alternatives
You cannot keep doing the same things and expect different results. I had to tell myself the frank truth. I knew If I continued the way I was going, I was headed for a colossal crash. I revisited my business policies, investment options and even proposals that I had initially debunked. I created other avenues for income that will resuscitate my imploding finances. I did not stop doing my core business totally, I just tried out other options. I searched out a number of profitable investments that required less capital involvement compared to the business I was doing. That way, I was still in business while trying to get back on my feet.
Ask for Help
No man is an island and sometimes you need to come to terms with your present reality and do some things that are needful. I had to go to seek counsel from experts and people who had walked this path. I read stories of people who shared their experiences going through a financial crisis. I learned a few things I applied and they helped me to chart my course back to financial stability. I hired a business coach that helped me out. I highly recommend it.
Final Thoughts…
A financial crisis is one of the things that you are most likely going to encounter as an entrepreneur – that’s if you are not currently going through it. It should not halt your life or put you on a standstill. I believe this few things I have shared should set you on the path out of the financial crisis you’re struggling with.
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