The current pandemic is wreaking havoc on the economy and businesses. It’s not your fault. There is nothing you could have done, but now that it is here, it is time to make some hard choices and start using finance strategies you usually wouldn’t consider.
Financing your business nowadays means being frugal, being wise with lending, and being creative. We are all in the same boat and working together to keep our businesses open is essential for communities and society itself, so try out these tips and remember to think outside of the box.
Stay Up to Date with the News
The news is changing widely, with new policies and rules being put into place every minute of every day. Stay on top of it all so you don’t miss out on a new program that would greatly benefit your business, like a slash on business rents.
Use Your Stimulus Money Wisely
The US government is planning to provide all citizens with money to help support themselves through the crisis as part of its stimulus package. For businesses, they will have access to funding from a $2 trillion coronavirus rescue package. This package requires that the government take financial responsibility from the private markets. It does mean that it has the power to decide which businesses to support and which ones won’t be.
If your business is being supported, don’t waste the money away. Try to use it sparingly and be aware of all the conditions of accepting the loans from the government before you accept it.
Know Where You Can Get Your Own Loans
Alternatively, you could also seek out your own loan. Imperative if your business doesn’t apply for government support or if you don’t agree with their conditions (mid-sized businesses cannot outsource jobs until two years after they take the loan, for example). In either of these cases, you will need to know where you can secure a loan from a third party. These can be business loans, an instant guarantor loan, or any other type of lending program so long as you only borrow the minimum that you need and agree to the repayment plan.
These types of loans will be of more interest to small businesses, consultants, and freelancers, as they won’t often be able to cover employee wages but can handle some business costs.
Collaborate with Other Businesses
The oldest currency is the bartering system, and now is the perfect time to start it up again. If you and another business can enjoy a mutually beneficial relationship and both don’t have the money to pay for your services, you can exchange your skills for free.
Another way you can collaborate is by buying together. Bulk orders are still more cost-efficient than small orders, so if you and several companies in your area buy together, you can enjoy the discount and still get the supplies that you need.
These are inevitable if you are struggling; employees will need to be furloughed or let go. Subscriptions will need to be canceled. You will need to run on a skeleton team, and that is okay if there is no other option. Provide support to your employees if and when you can, particularly by staying up to date with the news as many support services are only available through employers.