Every business owner will experience financial hardship at one point or another. Financial hardship in your business can happen for many reasons, some out of your control, and some in your control. Cashflow is usually the first problem that comes up in financial hardship, so we wanted to offer advice for anyone who might be experiencing a lull in cash flow. Now is not the time to ignore your vendors. Now is the time to lean into them and work to grow your partnership. Keep reading to find out how you can do that.
Don’t ignore your vendors. Instead, negotiate fees.
If cash flow isn’t coming in, the first problem you’ll experience is looming invoices from your vendors. Now is not the time to ignore them and hope they don’t follow up. If you are hurting for funds, they might be too. The best solution for this problem is to reach out to your vendors and work out a payment plan or negotiate fees. It is better to pay something than pay nothing. Good faith efforts can go a long way. Use this free hardship letter template to renegotiate your bills.
Be honest and communicative about what’s really happening in your finances.
Financial hardship in business is a tough thing to share. However, your vendors are much more likely to be willing to work with you if you are honest about what is going on right now. Not only will this help them to understand your situation, but it will help you both to grow closer. You have to look at your relationship with your vendors as a partnership. They are likely to understand your situation better if you give them the opportunity to learn about it.
Be slow to give up on your dreams.
Just because you are experiencing financial hardship in your business right now, doesn’t mean that this is forever. Business owners go through many seasons throughout their experience; this is just one of them. You might have to alter your plans or change the timeline, but don’t be quick to give up. Lasting business owners have learned that perseverance and determination have made them the success stories that they are today!
If you would like to talk through your finances with a professional, we are happy to help! Because our business is virtual, our client experience remains exactly as before. Feel free to contact us for a consultation!