How to Boost Your Finances in a Crisis by Tapping into Underutilized Assets
The recent COVID-19 pandemic has created massive turmoil in the world’s markets. Thousands of businesses had to shut down, and many more are trying to find a way to survive the sudden drop in revenue. The new situation is pushing enterprises to reinvent their finances to cut down on expenses and improve efficiency.
That usually means getting the most out of already available assets that are not fully utilized. There are all kinds of underutilized assets you can use to provide a stable foundation for your company’s future. We’ll tell you what to focus on and how to stabilize your business.
1. Reduce Debt As Much As Possible
Debt comes in all shapes and sizes, and even the smallest amount can create considerable problems when businesses struggle to survive. That includes credit cards, business loans, personal loans, unpaid medical bills, and so on. Since many companies see a drop in income, debt that was previously manageable can become a severe problem. It will take more and more of your monthly income, putting your company under various risks that could create massive financial issues.
While it may seem like it’s a bad idea to eliminate debt in these challenging times, it will help you get back on your feet quicker and assist you in the long run. If you can’t pay your entire debt, it’s a good idea to reduce or even eliminate debt and redirect the money left into savings accounts or investments.
Start by going over your books, identifying all debts, and pinpoint those that affect your income the most. Try to pay them off first by consolidating your debt and possibly finding a new way to earn some money on the side. In other words, you will have to reinvent the way you do business to make an extra buck if you can.
2. Start A Side Business
Every crisis brings new business opportunities, and you must do what you can to help your business stay afloat. For example, Wrapify started placing paid ads on their cars, allowing them to earn some extra cash in the process.
While that may not be the best solution for all businesses, it’s an excellent example of using underutilized assets to improve income. Let’s say that you own a printing company that’s not looking financially stable at the moment. You can gather some money and invest in 3D printers you can then use to make protective masks and headgear to sell and improve income.
Think about what the people need in this new situation and improve your offer according to the trends. Even if that means going out of your field, it’s better to reinvent your business and make up for the losses with new ideas than do nothing and watch your company sink to the point beyond saving.
3. Sell Your Skills and Knowledge
Running a business for years leads to developing new skills and knowledge you can turn into cash. You might even have individual skills you’re not using at the moment, and they can also help you generate extra income. Skills are one of the most underutilized assets most people forget about.
You can use marketing methods to offer your skills to people all over the globe. Place a few ads on the internet, create a LinkedIn account, spread the word about your offer everywhere, and allow people to discover you online. That can help you build a new business based on what you know, which means that you won’t have to invest a lot of money into staff and equipment.
Share your knowledge with those who need it and use what you know to bring in extra income and patch up the pandemic’s holes. There are certainly some people that could use your skills and knowledge to improve their businesses and companies. While giving away the trade secrets isn’t always a good move, it could be the detail that saves your company from drowning during hard times.
4. Minimize Your Expenses
Even if you find ways to make money on the side, one of the most effective methods of boosting finances is cutting down your expenses. Sit down with your accountants and create a list of costs you can do without. That could be things like employee bonuses, organized parties and holidays, car maintenance bills, and so on.
Reduce all variable costs you can, but if the amount you have to pay each month is still too high, you should push for a debt moratorium. Also, make sure you don’t get any other loans to keep your business afloat because that will probably do you more harm than good, especially if the crisis goes on longer than expected.
5. Turn Your Hobby Into Cash
No matter if you like playing the piano or spending your time working on your motorbike in the garage, you should try to monetize the skills you developed over time. Offer online tutoring and expert classes for other people that share the same love for your hobby.
You can even set up a YouTube channel and get some extra income that way as well. That will take some careful planning, and you will have to adapt to specific rules to make sure that your content is attractive to a broader audience. However, if you manage to do that, your videos might go viral, and you could make a substantial amount of money only on video views. In other words, use everything you can to create some kind of stable startup to get the extra cash you need to survive the current crisis.
The Bottom Line
The newly created situation on the worldwide market is pushing many businesses over the edge. If you don’t want that to happen to you, you may need to think outside of the box and take a different approach.
Cut down on your expenses, offer your knowledge to others for a price, and possibly start another business that provides services needed at the moment. Start brainstorming right now and consult your financial experts about what moves to make to keep your business above the red line.