Calling it a day is the last thing you want to do. It’s your business, it’s your baby and you have no doubt not only poured your heart and soul into it but also your savings too.
Whether you’re re-opening your business doors following lockdowns, you’ve kept the business going with remote working or business has continued on without too much disruption, if you’re having cash flow challenges and have limited sources of funding, it may be time to look at when to call it a day.
There are two factors that will impact the decision:
This is the obvious one. Some people think it’s as simple as asking the question “when are you going to run out of money?” But I beg to differ.
Consider the situation where you have accumulated savings. You lent money into the business in the early days to get it up and running. Then, over time, it may have been self-supporting, and then business starts on a downturn, for whatever reason.
Too many times I’ve met business owners whose only focus on the numbers is checking their revenue. Whilst revenue is fundamental for all businesses, focusing on this alone doesn’t give enough information to know whether you’re making a profit or not.
Revenue goals are important, don’t get me wrong. There’s nothing more exciting than getting to that first 6 figures revenue figure, or the half a million dollar mark or the million dollar revenue line.
And like all goals, they serve an important purpose for something to aim for and to then celebrate when achieved.
My issue is that revenue of itself isn’t enough. There’s no point having revenue of say $ 100,000 if your costs are $ 120,000.
That’s where another number comes into play. Break even or what I like to call minimum income. It’s also what is needed to fulfil the key element of presence. Without a business that is at least meeting its costs, your presence in business is at...
There are also a number of measures you can take irrespective of how the initiatives may impact your business.
How can you do business differently and keep your doors open for business survival?
I was talking to a client who sells products in the disability sector. They are already finding opportunities to provide online services to their customers which previously would have been provided in a face-to-face environment by health professionals who are faced with isolation requirements.
We talked about what would happen if one of the staff in the office became infected thus requiring the entire team to self-isolate. I suggested finding someone they trusted who wasn't on the team who could go into their office. Then whilst they were there instruct them on what to do to send out orders.
If there's a...