Dealing With Financial Difficulty When Running a Small Business.
November 26, 2018 by Staff
Filed under Money/Business, Weekly Columns
(Akiit.com) Running a small business is by no means an easy feat. Running a small business that is experiencing financial difficulty, however, is a whole lot harder. The good news is that there are various things that you can do that can reduce the financial struggle that you experience as a small business owner when times get tough. Here are a few to consider!
Separate Your Finances
So many small business owners make the mistake of using their own bank account to fund professional practice. This isn’t all too surprising. They start out dealing with small sums of money and find it simple to separate what is their own and what belongs to the business in their mind. However, as the sums of money you’re dealing with and the number of transactions that you carry out begin to grow as your business expands, this can quickly become problematic. It’s always best to keep personal and professional finances completely separate.
Not only will this benefit you in terms of knowing what you can and can’t use for personal purchases, but it also comes in extremely useful when filing personal and business tax returns at the end of the fiscal year. While a business account doesn’t tend to vary from a standard checking account all too much at first glance, it does allow you to carry out all professional transactions separately from personal ones.
Consider Bankruptcy
If your small business is experiencing extreme financial hardship, you might want to consider filing for bankruptcy. This will put your business’ operations to an end, but this isn’t necessarily a bad thing if you aren’t generating any profit and are making a constant loss. It will also clear all of your outstanding debts, meaning that you don’t have to worry about forking out money that you don’t actually have to professional lenders. Having to that may seem extreme, yet that is one route a business owner can take. For Pennsylvania based visitors who is reading this article, do know there are bankruptcy attorneys in Harrisburg that can assist you. In all, just research, and see what is right for you and your business.
Clearing Debts
If bankruptcy isn’t an option that appeals to you, you’re going to have to start making major moves in regards to clearing your business’ debts. There are various ways to go about this, but the first step that you should consider making is to consult a financial advisor. This professional will be able to survey your business’ spending habits and cut down on unnecessary areas. They will also be able to come up with a plan that will allow you to clear your dues as quickly and effectively as possible.
Sure, financial difficulties can create a whole host of problems when it comes to your business’ operation. But keeping the above information in your mind at all times will ensure that you minimise the amount of confusion surrounding your personal and professional finances, that you have an option when things become too complicated to fix, and that you have an option if you are extremely determined to turn things around!
Staff Writer; Mack Shaw