Running a company is like walking on a two-edged sword. So many things to manage, so many aspects to handle, it seems you are in the middle of an ocean in the effort to reach to the coast. Among the countless responsibilities, the biggest task is to manage FINANCES. After all, commercial activities run on money power only. Above all emotions, reasons and logic, exist to the only reality of MONEY.
Profit and loss are like a daily routine thing. However, if your company has experienced a HUGE financial loss shaking the business from roots, it is time to change the whole strategy. The need is to pour a new life in the business and start everything again. Certainly, the task is not easy and seems like an impossible thing, but until and unless you do not try anything, how can you surrender.
Yours is not the only company to face a big financial pitfall, many in the world have gone through the same stage. Their experience gave birth to some important lessons that can now help your company to revive from the substantial loss.
Reduce daily expenses
Well, this is something that occurs naturally when your company is in the loss. When there are no sufficient funds, you cannot spend much. But the point here is to detect majorly those expenses that still happen but they are not much important. For instance, for a while, it is better to forget buying daily tea and breakfast from the shop near your office. Bring something from your home, these expenses look small but become big at the end of the month. Pay attention to electricity consumption, discontinue careless attitude and switch off the lights, fans and A.C after consumption. In fact, limit the use as much as possible.
Try to negotiate from your suppliers for affordable deals
Raw material, semi-prepared stuff, whatever type of transaction is there with the suppliers, try to get it on lower rates. This can hugely save money and revival of a company from the chaos and money mess can gain a good speed. However, do not do compromise in quality as you also need to take care of your goodwill in the market. Loss of a good image is much bigger than the financial loss. Do market research, find out the options of suppliers, compare the rates and finally make a priority list. Talk to them one by one and try to bargain with best possible efforts. However, finding new suppliers should not be on the cost of professional relations with the old ones. Usually, the existing suppliers agree to adjust, as for them, you are a regular client and it is not easy to lose one.
Sell the assets that have no use
Time gives age not only to humans. Old machinery, electronic appliances, furniture that you purchased once but are no more in use, will only depreciate. Why not sell them off and earn some money. Not everything around is useful, in fact, they can be of more use for someone else or for some other company. List the assets on the websites that sell such stuff and mention a due price. If necessary, do some repair work to make things look and function well. This can help get a good price.
When every single coin has a huge value, earned money through this way can help a lot. If possible, gather all the assets in one place where visitors can come to buy. They can have a look of other things also and may purchase more than one. This can prove a deal of benefit.
The Revival stage –
Now it is time to start working on the improvement part. Try to reach on this stage as soon as possible.
Gather the scattered debts through debt consolidation
A financial loss brings a certain consequence of pending obligations, delayed loan instalments and mounting debts. It is not possible to pay off all the obligations now, some sort of solution to this issue needs to bring in your action plan. Usually, in such situations, debt consolidation is considered as the most suitable option. Now with the emergence of online financial services you can get the due solutions despite the bad credit. Search for the debt consolidation loans for bad credit people in the UK and pick from a good number of choices. To get the most affordable deal you need to do deep, detailed research. Some lenders like Lending Works, AVANTCREDIT, Loan Palace, are some of the options that you can explore.
- To qualify for debt consolidation loans you need –
Repay Capacity – Lenders are always ready to help you but in exchange, they need the surety of a risk-free borrower. After all, they too risk their money and need to make sure that if the applicant has a good repayment capacity or not. Present the yearly turnover statement before the loss happened, this helps the lenders know the actual worth of your business. It is effective especially in those cases when the loss happened due to the big economic turmoil in the country or due to some natural calamity. In both the situations, you are not at fault, in fact, your business just became the victim of the circumstances.
Is the company in safe hands? Recruit skilled staff
After debt consolidation, you are sure to achieve better control of finances. Now it is necessary to recruit skilled and competent employees who can work hard and help the company get back to normality. They should be able to give more productivity in less time, after all, it is necessary to speed up the improvement procedure. Human Resource is the biggest strength of a company. It is not bad or wrong to say good-bye to the employees that are not giving actual and desired productivity. After all, a business is all about commercial concerns.
The downfall in business is part of the game and it is better to not to lose patience. Work effectively on efficient plans and keep doing whatever is correct and due.