Whether you're facing a cash flow shortage or a human resources problem, addressing business crises quickly and efficiently can help you resolve the issue and lessen the extent of the damage.

It's important for entrepreneurs to understand the difference between acting expediently and simply making rash decisions. And the key to separating the two and making the best choice for your business is to take fast, but calculated steps.

1. Don't go it alone

Call together a meeting with your closest business advisers to decide on a range of scenarios, options and resolutions. Speaking with financial professionals that are not directly involved in the business operations can add a layer of objectivity to your decision-making process and provide you with insight you may not have had beforehand.

2. Review your resources

Before you can make any educated decision, you have to know where you stand. Conduct a thorough review of your cash flow, budget, expenses and other resources to help you make a more informed decision. Depending on the extent of your particular problem, you may find that making small changes to your finances can help you overcome an issue or buy you time until you come up with a more permanent option.

3. Make difficult choices

No business owner wants to cut back on operations or pull the plug on a new project, but sometimes making these changes can make or break a company. Weigh the pros and cons of diverting resources or putting a new campaign on hold, and think about how each decision or scenario might affect your business overall. Exploring the consequences of each option can put your situation in a new perspective and help you see which action is right for your company.

4. Communicate with stakeholders

It's important to be honest and open with business partners, employees and customers about these decisions to demonstrate that you're acting in the best interest of the business. Telling investors and partners you having financial difficulties may not be easy, but keeping people in the dark may backfire. Overcoming these minor obstacles can pave the way for a company's growth.

 

The information provided is presented for general informational purposes only and does not constitute tax, legal or business advice. Any views expressed in this article may not necessarily be those of Nevada State Bank, a division of Zions Bancorporation, N.A. Member FDIC