Businesses have been hit particularly hard by the coronavirus and the subsequent lockdown. It’s pretty common to hear about companies choosing to lay their talented workers off just to survive during recessions. And that is exactly what we’re in, a recession. But that is going to cause a swing motion, whereby we go from not being in debt, into debt and then out again. This growth, decline and growth pattern is not always a given. Many times, you will find it difficult to get out of debt as a business and use the economic recovery’s momentum to finally get back onto your feet.
Cutting workers?
Rather than cutting your staff, consider putting them on a remote-employee status. With greater technology to manage inventories, tasks, team, projects and invoices, you can move your operations into the living rooms of your employees. Utilize conference call software to stay in touch with workers and use cloud-based systems to backup work being done and projects which are complete.
Physical workspace
As commercial real estate is going into a downturn, the prices for your new office will be inherently lower than your current contract. Consider going for a per-square meter office, that is below the average price. Negotiating with the realtor is highly recommended. Let him or her know that you are looking for a long-term contract that will suffice your new working arrangements. They will know that there is a large shift of companies employing remote workers and thus, they need to commit to competitive pricing.
Debt discharge is an option
Rather than burdening the debt, you have now, why not consider changing your status as a citizen? These are the debt relief programs pros and cons. You can regain a Trust which is set for every US citizen. Reclaiming it from the Federal Government gives you more control over certain things that the Trust can be used for. You may not be subject to things such as traffic fines, court case fees and other financial obligations. Since you own a business, this is very advantageous as you save more money.
Government stimulus
The US government has released something called the CARES package. This is effectively a stimulus check for businesses to pay their rent, salaries to employees and maintain their operations across the board. It’s a $500 billion package which is part of the larger $3.3 trillion package that the FED has begun implementing.
Find a partner
Now more than ever, you should find an investment partnership that can lift your business higher. The stock market is going ballistic and that’s because of the newfound confidence that the economic recovery is bolstering. Thankfully, the appetite from investors is very high and you should have no issues with finding someone who is willing to partner with your business. Consider going to a convention for investors or small businesses. You can find people who will give you the funds you need, while not taking a huge slice of your company.
Now is the time to seek an investment partner to team up with and get out of your debt. Equally, you can change your legal status and no longer be subject to annoying fees and use that extra money to fund your operations.
