Business in a crisis
Due to the unstable economic situation, many enterprises are now in crisis. If it is not so strongly reflected in the large world companies, then the crisis brings to the representatives of small and medium business a lot of problems and difficulties. Many entrepreneurs panic, some even think about closing a business.
Of course, doing business in a crisis is not an easy thing, and here you have to be prudent, attentive and calculating. But putting an end to your enterprise ahead of time is not worth it. How to keep a small business in a crisis and always stay afloat – this is our advice further.
Any business not only earns money, but also pays someone. These two things are inseparable conditions for the successful functioning of the company. A business owner can pay rent, pay suppliers for materials or goods, pay for advertising, transportation and much more.
In a crisis, when every penny in the account, there is a desire not to pay the bills, thus simply deceiving their partners. Naturally, after such actions, it is unlikely to come out dry. Especially if such actions are systematic. Therefore, no matter how strong the temptation to cheat financially of their landlords, suppliers or other partners, you should choose a different course of action. Instead of deliberate deception – constructive negotiations. If you feel that you cannot pay as much as you paid before, or you can, but want to save money – start negotiations with partners about new conditions of cooperation.
In any cooperation agreements, the rights and obligations of the parties, the terms of interaction, payment schemes, etc. are specified. Perhaps everyone knows that such a document can be drafted in such a way that there will be certain weaknesses for one of the parties. The small print at the bottom of the page, which usually nobody reads – this is not the most terrible situation. An experienced specialist can draw up a contract in such a way that, from a legal point of view, you will need your partner a lot more than expected, and this will be accompanied by many other unpleasant conditions for you. This, of course, is a crude example, but one has to be very careful with this issue.
With the help of a reliable lawyer, review all your existing contracts and contracts for the presence of potentially dangerous items for them that your partners can use in their favor. If it is possible, immediately correct and agree with the second parties the terms of the existing contracts, if not – just be more vigilant when drafting new ones.
If a loan hangs on you, try to find ways to pay it off as quickly as possible so as not to risk your property. With new loans in times of crisis, it is also better to wait. On the one hand, such advice may seem illogical – “After all, if there are problems with financing, then why not apply to bank lending?” Many will say. But in any lending has its own pitfalls. And in an unstable economic situation, they can all become much more dangerous.
In a situation of delay in repayment of the loan, the business risks its own production and other property, and in some cases the entrepreneur risks his own property. Any problems with the timely payment of the loan may trigger bankruptcy. If, however, you cannot completely abandon lending at this stage, then at least keep your own loans under strict control and plan in advance all the costs of loans so as not to be a malicious defaulter and not cause any negative consequences for the business.
It is always important to be able to allocate efficient employees among those who just sit down in the office and get rid of the latter. And in a crisis, it is not just important, but extremely necessary. The construction of business relationships with staff should be based on a clearly defined labor contract, containing the terms of remuneration, bonus payment scheme and other financial issues.
Not only for the business owner, but also for employees, the crisis will bring little good: often the staff ceases to pay a fixed rate, and the amount of wages becomes dependent on the actual profits of the enterprise. Whether to go on such a measure – decide for yourself by carefully analyzing the financial condition of the company. But it is practically necessary to set employees clear production or sales plans every month in a crisis. Plans are likely to be higher than in “quiet” time, and very few people will be happy about it. But a crisis is a crisis.