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What to do If You Hit a Financial Rough Patch While Running Your Own Business

What to do If You Hit a Financial Rough Patch While Running Your Own Business

It’s well known that a multitude of financial risks exist when you first start out as a self-employed individual or in the early days of running a business. With careful planning, most of these risks can be avoided. That said, there is no way to predict precisely what is around the corner. Even the best-intentioned individual with meticulously laid plans can fall foul of an unexpected bill, fine, charge or fee. So, what do you do if things just aren’t working out financially? Here are some suggestions.

Seek Help

Your first port of call should always be to seek official advice. Check out the government website and other business advice platforms to see what is recommended when it comes to your particular circumstances. You may find that there are loans, grants or other forms of support available to help tide you over or it could be that certain advice is available on how to get particular charges waived or reduced. Speak to other business owners in your position as well. You may find that they too have been in a tough financial position and they might just have some ingenious tips on how to solve your problem.

Borrow What You Need

There are business loans available that may help to bridge any existing gap, helping you to recover your cash flow and rebuild your finances on the other side. If you’ve been forced to pump your own money into the business in order to bail it out, you could also look into payday loans as an option to get quick cash. This may give you the opportunity to get yourself back on your feet as an individual.

Reduce Your Expenses

Are there specific tools or expensive resources currently used by your business that you can cut loose? Whether it’s an accounting app, a costly piece of machinery or a membership, consider ceasing expenditure on any optional extras. In some circumstances, this may mean that you’ll need to take on a little more work for the time being, but as long as you can make it out of your current hole, it will be worth it.

Request a Payment Plan or Launch an Appeal

If you are facing a fine or charge, it may be worth approaching the body responsible and asking if there is a way in which they might go easy on you. See if you can spread the payments to make them more manageable or, if you don’t understand why you’re being penalized in the first place, try to see if there is a way you can fight it. Be reasonable and respectful and you may just get the same treatment in return.

Downsize

It’s not a pleasant thought, but downsizing your belongings may be necessary. Think about selling off assets, including premises, tools and equipment. You may even need to let some members of staff go as you scale back operations. Remember to take capital gains tax into account if you’re disposing of anything purchased for business purposes. You may need to downsize in order to survive. If you make it through, you can rebuild when this difficult time has passed.

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