How to Manage Your Finances in a Crisis
Have you found yourself losing sleep at night due to worry or asking yourself, “Am I going to be all right?” If so, you’re not alone. We are living in unprecedented times and no one can predict what will happen or what our nation’s and world’s recovery is going to look like.
And as a business owner, you are likely to be hit harder than most. How do you support your employees? How can you continue to serve your customers? Will you get through this financially? These are serious issues that we want to help you solve. In a time where much of what is happening feels out of your control, here are 4 actionable steps to help you weather this storm.
1. Talk to Your Vendors
Make a list of all your vendors and reach out to them, asking if they can defer payments and decrease orders and production. Find out what suppliers are affected by lockdowns or state and federal guidelines and adjust accordingly.
2. Be Honest With Your Employees
This is a tough one. You care for your employees and they work hard to support your business, but hard decisions may be on the horizon. If possible, allow employees to work from home, but if not, look at your options. The new bailout bill is expected to offer payroll tax relief for small businesses, and a small business rescue package that could provide a grant to cover payroll costs is in the works. (1) But most of all, be honest with your employees about the reality of cutting hours, furloughs, or layoffs. There’s already enough uncertainty; make sure your employees know what’s going on with your business.
3. Look Into Loans
If you need some help getting through this crisis, the U.S. Small Business Administration (SBA) is providing low-interest disaster loans for businesses facing losses due to COVID-19. (2) Right now, the approval process and turnaround times are expedited to get you the help you need quickly. Alternately, talk to your credit officer about other loan options that might be better suited to your business. Don’t be afraid to get some assistance if it means your business and employees can continue to succeed for years to come.
4. Don’t Ignore Your Personal Finances
Emotional times can cause us to make rash decisions. Try to tune out the headlines and stay focused on your long-term financial strategy. Assess your cash flow, cutting things out and directing funds to other line items so you can survive these circumstances. Times are tough, but there are opportunities to strengthen your finances in this market environment by refinancing your mortgage with lower interest rates, taking advantage of low stock prices, and checking in with your advisor about what is happening to your portfolio to make sure it still aligns with your needs and risk level.
We Are Here for You
As Fred Rogers’ mother famously said, “Look for the helpers” in scary times. At SC Financial Services, we want to fill that role of helper for you. We serve the specialized needs of our business owner clients and want to help you make decisions that will enhance your finances and your life so that when we go back to our regular routines, we do so with more clarity and confidence.
Please don’t hesitate to reach out to us with any questions or concerns. We are passionate about seeing you succeed and want to assist you in any way we can. Contact me today at 480-214-9596 or firstname.lastname@example.org to set up a free 30-minute phone or virtual consultation.