How to Protect yourself and your Brand against Financial Difficulties
We live in difficult economic times, where business confidence and spending continues to plummet against the backdrop of Brexit and economic uncertainty. This has the potential to create a harsh economic landscape for firms, particularly start-ups or SMEs with limited resources and resistance to austerity.
3 ways through which you can protect yourself against Financial Hardship
Fortunately, since the Great Recession far greater assistance has been made available to businesses that encounter financial difficulty, regardless of their niche, size or future growth plans. With this in mind, here are three ways in which you can protect both yourself and your company from fiscal hardship: –
1 ) Spend within your means
This is a lesson for both consumers and business-owners to heed, as excess or irresponsible spending fuelled by borrowing often creates a spiral of debt that cannot be maintained. It is therefore crucial that you look to create a stringent business budget, and one that is extremely accurate and calculated in pence rather than pounds. This affords you clarity when it comes to spending and investing in your business, while enabling you to commit within your means and avoid the dreaded spectre of commercial debt.
2) Pursue Organic and Flexible Growth
Some confuse the need to restrict spending with stunted growth, but this need not be the case in the current business climate. Instead, your business can pursue organic and flexible growth in line with a long-term plan, rather than forcing this will ill-planned or excess investment.
Organic growth occurs in line with the natural expansion of your brand, of course, as you reinvest profits and build from a solid foundation. In terms of pursuing flexible growth options, these include impermanent and affordable business solutions such as pop-up retail spaces and mobile storage units, as these reduce costs and the need for a long-term, financial commitment.
3) Consider Insolvency as a last resort
In the worst case scenario, you may find that your business has become mired in debt and is in need of drastic intervention. Historically, distressed companies of this type would be wound up or placed into receivership, but now there is far greater hope for firms facing huge financial challenges.
Thanks to the efforts of service providers like Withers Worldwide, for example, the insolvency and business turnaround markets are more buoyant than ever. So rather than winding up your business, you can instead look to restructure its debt and create a long-term plan of recovery and growth.