You can minimize the chances of your business ever ending up in bankruptcy. You just need to know the best strategies out there that will help you prevent bankruptcy from ever happening. Here for you are five of those strategies.
1. Be Certain You Have the Right Insurance
If you do not have the right insurance plan in place for your company, you can end up losing a lot of money. Do not let this be the case for your business. Make sure you have everything covered and make sure you will not lose money should an accident or emergency happen.
Take time today to ensure you have the most comprehensive insurance plan that is tailored to your business’s specific needs.
If you are searching for a good insurance provider make sure to look for a reputable company in your area by searching for commercial business insurance followed by the city you live in. For example, you might search for commercial business insurance in Montreal or search using your current location.
Do not put off any longer having the best insurance plan in place. Failure to do so could one day kill your business.
2. Consult with an Attorney
You do not have to wait until you are faced with bankruptcy to utilize the services of an attorney when it comes to your finances. In fact, sometimes an attorney can help you not end up in bankruptcy. Do you currently have an attorney that is privy to your financial information and who can help you make the most of it?
Attorneys can find ways for you to protect your cash and other assets from ever being threatened. And they also can help you figure out ways to make more money. If you already have an attorney for your business, you need to ask them for assistance with helping you prevent something like bankruptcy. Go ahead and put those measures into place.
3. Limit Work-Related Travel Expenses
Work-related travel can eat up your budget. And you have to be careful about this. If you currently are faced with tough financial times, you need to be looking at this right away. It can have an immediate impact on your finances.
Ask your employees to only scheduled necessary travel. And if your team does have some work-related travel, you need to stress the importance of being frugal. Make sure they are booking the best rates for car rentals, flights, and overnight accommodations. You also can employ your staff to lower their dining out costs while traveling for work.
4. Hold off on Hiring and Promotions
As much as you want to ensure you are bringing in the best talent, you might need to hold off hiring new staff. And you may need to refrain from giving promotions, too. You have obvious expenses you can avoid, and you have some costs that might not be so obvious.
You do not have to make this a long-term policy. A temporary freeze on hiring and promotions could work wonders for you, too. Do not be afraid to take this measure. It could be a necessary step to ensure your business does not end up in bankruptcy.
5. Only Use Free Advertising and Marketing
While you look for ways to increase your revenue, you likely look at your advertising and marketing budget and plans. You want to make sure you are not spending too much, and you want to make sure the strategies you have in place are effective. But you can still excel in advertising and marketing without spending any money at all.
Consider, for example, social media. You can utilize social media platforms to boost your advertising and marketing, and those platforms have so many free features you and your team can use. Don’t forget that word of mouth marketing is your most effective marketing strategy. Make sure you and your staff are cognizant of free networking opportunities in your community. And don’t forget to used free earned media strategies to gain your business coverage by magazines, newspapers, radio stations, and TV stations.
You Can Protect Your Business from Bankruptcy
Through your use of one or more of the strategies suggested above, you can protect your business from bankruptcy. You do have other considerations you can think about, of course. But the five aforementioned tips are tried and true and strategies you really should consider.
Samantha Higgins is a professional writer with a passion for research, observation, and innovation. She is nurturing a growing family of twin boys in Portland, Oregon with her husband. She loves kayaking and reading creative non-fiction.