No one predicted the coronavirus, and yet here it is full-on. Worse, it might have taken your business away, shutting it down for good.
Here’s the silver lining, though: you will always have the chance to restart. These tips will inspire you to do it as soon as you’re ready:
1. Check Your Books
Before you reopen your business or even start a new one, take stock of the assets and liabilities. Ask yourself these questions:
- How much cash do you have?
- If you have limited working capital, do you have other assets like inventory or equipment you can convert into cash?
- How liquid are you?
- Do you have outstanding debts, and how much is it?
- Are you on time with your repayments?
- What are your equity and net worth?
Perhaps the pandemic closed down your company so quickly you didn’t have time to even look at your books. You can save yourself the hassle by opting for outsourced bookkeeping services.
This arrangement is also ideal for restarters since you need not pay for training, fixed wages, and benefits. Some companies even allow you to choose your preferred plan according to your budget and requirements.
2. Get Smart with Lending
If your capital is still not enough to restart a business or cover all your debts, the next best option is to lend money. Now, a warning: avoid loan sharks at all costs.
These lenders are attractive since they can provide you with the money you need fast (even within 24 hours!) even if you have a bad or low credit score. However, they also have some of the highest interest rates that you will have a difficult time repaying it. Most of all, it is illegal. If they scam you, you might not get your money back.
If you have an existing debt with a lender, you can explore consolidation, transfer balances, refinancing, and restructuring. All these can help make your loans more affordable and easier to pay.
States and territories are also extending different kinds of financial assistance for employers, self-employed, and employees. For example, if you are a small- to medium-sized business, you might be eligible to receive up to $100,000. You can also take advantage of an asset write-off of up to $150,000.
Bootstrapping is financing your business with whatever resources you have. That means your savings and investment income, as well as no-interest loans from friends and family. Grants and financial assistance also count.
Other ideas include:
- Getting salespeople on a commission basis
- Counting on loved ones for labor
- Using free tools, such as social media, to market your products and services
- Delivering or picking up goods using your vehicle
When you bootstrap, your available resources are severely limited, but they also come with many advantages. First, it teaches you to think outside the box and make the most of your existing assets. Second, it’s easier to scale your business. These days, it is essential to be more flexible since markets are still unstable.
Restarting a business in the middle of a pandemic won’t be a smooth ride. But it doesn’t mean it’s not doable. Combined with persistence, passion, and innovation, these tips will help you get yourself back up.