Your business is struggling, income is low, and expenses are high. Now what?
You are now you are faced with your largest payment obligation…payroll. Your employees work hard and must be paid on time. You need to make a decision fast. Here’s a guide for surviving when you can’t afford payroll.
Take a business loan.
It is not uncommon for businesses to run into payroll hardships. You can qualify for a business loan, even if you don’t have perfect credit. Loans for payroll are in abundance, but not all are created equally. You can spend hours searching online and compiling data for the application. The truth is you don’t have time to search the web for a lender or for funds. Financing Your Way can help match you with the perfect direct lender, so you can get funding fast without worrying about the legitimacy of the loan.
Talk to employees.
You must pay employees for work that has been completed, so there is no way to escape payroll. After you apply for the business loan, take an honest look at your business and where you feel it is going. If you feel you need to make changes to survive in the future, have a discussion one-on-one with employees and to make payroll cuts as needed. You may need to begin with reducing hours, as needed for hourly employees. Pause any future hiring efforts until your cash flow is stabilized.
Take a pay cut.
As the business owner, you should be willing to take a pay cut as well. Your business depends on your ability to make good decisions and personal sacrifices. By taking a pay cut you take the personal loss in order for your business to survive. This decision may cause you to make lifestyle changes, but when your business cash flow increases you can freely increase your personal income.