When Money is Tight, Do This First - A Bookkeepers POV

When you can barely breathe because you don’t know how you are going to make payroll or pay rent, do this first. You’re going to think I’m bananas, yet this has scientific proof.

1. Prioritize Expenses: Determine which expenses are essential and which can be postponed. Payroll and rent are typically top priorities, so identify non-essential expenses that can be temporarily cut or reduced.
2. Communicate Transparently: This is a big one. If you're facing immediate challenges, communicate openly with your employees and landlords. Transparency can build trust. Your team needs to know if they need to make arrangements. Landlords may waive rent for a bit, if you are truly in a dire situation.
3. Explore Financing Options: Consider short-term financing options like a business line of credit or small business loans. Look into government programs (SBA is a good place to start) or grants that might be available.
4. Reach Out for Support: Connect with your network of fellow entrepreneurs, mentors, or coaches. They might offer valuable advice or resources that you haven't considered. Some of them might be willing to give you a loan or invest in your business.
5. Follow Up With Clients: Reach out to current clients for early payment, reach out to clients for past due payment, reach out to clients who were on the fence going with you. Often, we leave money on the table due to lack of follow up. You could have thousands of dollars in accounts receivable that you just need to make a phone call to collect on.