Let’s face it. Being an entrepreneur is hard work and while some onlookers may think that you’re stacking piles of cash on your yacht every Sunday, you know that in tough times, it takes all your grit not to entertain thoughts of closing shop. Your dream to expand seems permanently docked as increasing expenses and low revenue bore holes in that vision every month. Braving these turbulent financial storms and staying afloat when everything else is sinking around you requires strong acumen, even greater mental fortitude and a splash (or two) of creativity.
Create an Unsinkable Action Plan
The key to crisis management is a solid action plan. Ideally, you would want this plan to be proactive, strategic and comprehensive to ensure that all areas of your business are covered on rainy days. Begin by assessing your financial statements to determine your strengths and weaknesses. Next, try to anticipate potential changes in your financial landscape. Think about possible revenue declines or increases in operating costs and see how they would affect your bottom line. Then, adjust your budget based on your business’ actual month-to-month performance. This approach ensures that you’re never caught off guard, and you can make informed decisions swiftly to stabilise your operations when the waters begin to rise. If all this makes you gasp for air, don’t worry – our finance team can handle this and more for you.
But what happens if there is a sudden flood of unexpected crises? The loss of a business partner, critical equipment failure, prolonged sickness? No one anticipated a 2-year pandemic, shipping delays due to war or skyrocketing costs of being alive, much less living. Your titanic plan may not be enough to keep that business from going under.
This is where the u in entrepreneur takes the stage.
Don’t be a Castaway
Going the extra mile is never easy, but so is giving up. Closing the doors on a business can be heart-wrenching and for many, it signals the end of an era filled with hope. According to Money, the number of Australian business closures rose by a staggering 21% for 2022- 2023. Couple that with the significant drop in the number of new businesses and you have a diminishing entrepreneurial landscape. Entrepreneurs need support now more than ever to overcome the increasing financial, physical and mental challenges that they face daily.
The process of receiving support begins with acknowledging your difficulties and your shortcomings. This is where you may be able to delegate tasks to members of your team or seek hired help. It may seem counter-productive to hire an expert when the chips are down but that investment may be the key to unlocking growth in critical areas.
If hiring is still a definite no, then focus on what you can do and break down those large challenges into smaller, achievable goals. For example, you may decide to launch an online course. As complex as this can be, focus on completing content creation, before building the platform and marketing the course. This will provide a sense of accomplishment and motivate you and your team to keep moving forward. Every win is a reason to celebrate!
And don’t be afraid to connect with other entrepreneurs. Sharing experiences and challenges with others who understand your situation can be immensely helpful especially if you are on the brink of taking a dive. You never know how someone else’s story can significantly impact yours.
Man the Helm of Imagination!
Creativity isn’t just about being artsy, it’s about finding untapped opportunities and bringing novel solutions to existing problems or needs. Entrepreneurial creativity is crucial to overcome the challenges that often hinder business development and personal growth.
No one is saying to walk on water, but there are little creative strategies that you can employ to keep yourself afloat in times of crisis. Renegotiate contracts with your vendors to secure better deals on rent, utilities, or supplies. If possible, trade your services as payment – that way your bills are paid and you gain a new client or customer. This may also be the best time to explore remote work options for your team, which requires less real estate but has the potential for more team productivity. The goal is to reduce overhead costs. If you haven’t already, create an e-commerce platform with flexible payment options or subscription models to make your offerings more accessible to a wider audience. With a digital presence, you can easily seek partnerships with complementary businesses for joint promotions to further expand your reach and theirs, and open doors to new customers.
Future-Proof Your Business With Outsourced Finance Management
In times of economic uncertainty, proactive, rather than reactive, finance management can be your business’ lifeline. Don’t wait for the storm to worsen – take charge now and ensure your business remains resilient and futureproof.
If you need help navigating financial challenges with greater confidence, contact our team at Vital Addition today. Our Outsourced Finance Team integrates accounting expertise with commercial insight to help you chart a steady course and drive growth.