Small Business Strategies and Survival | part deux
Last week we talked about going online, you can revisit my first post here.
We looked at the many ways to take advantage of this tech world we live in to promote, sell, educate or shift your business. Now let’s talk money honey! The reality is many businesses are brick and mortar and their doors are closed. The bills are piling up and many entrepreneurs are stressing about the longevity of this outbreak. No one really knows the answer to this question.
Finances are always a source of worry for business owners, big and small.
Payroll, rent, payables, source deductions, PST, GST, and the list goes on. Everyone is in the same position right now with the economy frozen by the pandemic. Here are a few avenues to explore that may help to alleviate economic stressors:
MONEY! MONEY! MONEY!
Government Initiatives-The Federal Government just announced a package to aid businesses during the crisis. This may be beneficial for you as a business owner if you qualify for this new program.. There will be interest free loans and subsidies. Check out the link to see if you qualify
https://www.canada.ca/en/department-finance/economic-response-plan/covid19-businesses.html
LAY OFFS
This is an unfortunate reality of being an employer. There are times due to a number of reasons that you will have to let people go. This can be very difficult especially for small businesses with few employees. Hard conversations aren’t necessarily something you envisioned when you set out to start your dream business. Check in with others who have experience if you struggle with this. Many employees at this time will qualify for EI or the new Federal Government program called CERB link below. We have many entrepreneurs with a lot of experience so please connect with a member from the Well or myself.
NEGOTIATE
Talk to your landlord, vendors, bankers and any other person or organization on your payables list. Get extensions or increase your terms. Everyone is in the same boat so this is not the time for your landlord to find someone else to rent your space if you can’t pay rent this month. Many banks have the ability to give businesses a line of credit or increase their current one. Make the calls. Be proactive.
PERSONAL INVESTMENT
Over the years, I have had to inject my own money into my business. This is a decision that requires a lot of thought and evaluation of personal finances. I was fortunate that I was in a position to put money into my business when the economy was in a down turn. This allowed me, once the business started to regain ground, to pull the money back out as an owner’s withdrawal. Think about it, talk it over with your family if necessary, and remember that your business is an investment.
These are just a few ideas to consider in regards to making your money go further right now. Sit down and take the time to explore all your options.
Stay healthy,
Leane
Join Leane ONLINE for a virtual small business workshop this April at The Well. Mini Business Plan workshop, more info here.
