To prevent closing your business during difficult times, manage your current cash flow, and create a strict business budget, advises the U.S. Small Business Administration. Learning from others and seeking advice from mentors are also good ideas for keeping your business afloat.
When trying to avoid shutting your doors, start by assessing your cash flow, notes the U.S. Small Business Administration. Take a look at the money coming in and at clients' unpaid invoices. Then look at your debt and monthly bills, such as those from business loans or credit cards. Employee payroll, paying vendors and paying business taxes are the top priorities when working on a budget.
Another option to consider is getting a new business loan or revolving line of credit, suggests the U.S. Small Business Administration. A revolving line of credit allows you to borrow money to keep your business in a manner similar to having a credit card. As you pay off the loan, the credit line increases. There are also small business grants to can help keep you afloat.
If your business is new, focus on your weaknesses, and address the common issues, explains Forbes. If you have a great business model and location but lack inventory, you know building up your inventory is something to focus on in order to run a successful business.